The little costings box is calculated on a yield of 1t/ac, whereas the grower quoted between 0.7 and 0.8t/ac.
My fag packet maths shows a profit of about £100/ac at that level, before rent. Hardly something to get excited about given the potential to fail to get a crop at all.
0.75 tonnes per acre is £300 gross output. Growing costs are quoted at £110 per acre. My fag packet makes that a gross margin of £190 per acre. Not too bad considering it was his first year. As he says in the article, there's a few things he might do differently.
Less:
£20ac - cultivations
£20ac - drilling
£15ac - spray and fert application
£35ac - combining
Rent, cost of storage, pre drilling roundup?
If he'd gambled on a late April planting date he might have got 2.5t/ha, alternatively he might have got a late frost?
I want to like these alternative break crop options, and we grow winter linseed, but they all require the grower to be a massive optimist with a faulty calculator.
Frost has no bearing on soya - the sowing date is to do with establishment temperatures (and actually has no bearing on yield either...) Sowing later is more of a gamble than sowing in May due to the principal threat of dry seedbeds.
You appear to be conflating fixed costs with variable costs. Your cultivations, rent, drilling, spray & fert applications and combining are all used to calculate Net margins rather than gross margins.......
As said before, the grower in the article has achieved £190 gross margin, but I suspect a £100/ acre net margin would be considered good on a lot of farms these days...........
Obviously the risk with winter linseed is frost hardiness, but you can't tar every crop with that brush.......
it's the money in your pocket once the crop is sold that will be of interest to the bank manager.
Too right..!!
Mind if I ask about your margins on other break crops?
This appeared in the December 2016 issue of The Farmers Weekly.
The first one is early July (in 2015), the 2nd one is late July 2016
Are you supplying it for the grower to do with what he wants or does it have to go back to you (Soya UK)
Also any organic Soya being grown yet and how successful is it?
I have cut the quote down to the bit I refer too. If raw beans cant be fed to livestock what effect would be had by pigeon or pheasant feeding off them in the field?We have some growers who are planning to sell to local pet-food companies who have the micronising equipment to cook the raw beans. (You can't feed raw beans to livestock due to the trypsin inhibitors).
......
I have cut the quote down to the bit I refer too. If raw beans cant be fed to livestock what effect would be had by pigeon or pheasant feeding off them in the field?
How come they need micronising? Used to feed barley and peas mix straight off the combine for sheep [emoji848]
I'll try and phone you this week then!