SilliamWhale
Member
I think your missing my point, which I may of not made clearly to be fair. If I crop it and let’s say it’s all wheat then I’m paying out £50,000 in fertiliser, £12,000 in farm saved seeds, £37,000 in chemicals. My in house stubble to stubble cost will be circa £25,000 plus the extra in fuel so let’s say all in £140,000 before I see any profit.
The problem with this is the risk factor isn’t it. Yes I could sell some wheat forward but have you seen the recent weather patterns were getting the last 10 years? What about another 2012 flooding or drought which halves yields?
What about a collapse in the world wheat price? You can bet any forward sold wheat contracts will somehow be wangled out of!
We are living in very uncertain times and dumping out an extra £140,000 isn’t for me so you might think I’m mad, but I’m playing it safe protecting what we’ve already got.
£12k in farm saved seeds??