My new rotation plan

[yellow belly]

What would the typical gross margins be of all those crops?

its not gross margin that counts but total farm profit when a total farm rotation is looked at

gross margins are usefull to compare crops but not on a whole farm multi year rotation because fixed (operating costs) can be reduced in some rotations

 

[Clive]

its not gross margin that counts but total farm profit when a total farm rotation is looked at

gross margins are usefull to compare crops but not on a whole farm multi year rotation because fixed (operating costs) can be reduced in some rotations

Exactly ! I'm glad a few seem to get this

Not much can compete with a ww/WOSR rotation in terms of gross margin but look at farm profitability which is what counts and there are many better rotations

Too much focus on gross margin and not enough on profit and sustainability IMO yet another product of the press and trade steering farmers towards rotations that unit their profit and not the farmers !

 

[Baling Hay]

Exactly ! I'm glad a few seem to get this

Not much can compete with a ww/WOSR rotation in terms of gross margin but look at farm profitability which is what counts and there are many better rotations

Too much focus on gross margin and not enough on profit and sustainability IMO yet another product of the press and trade steering farmers towards rotations that unit their profit and not the farmers !

True but if a crop has zero gross margin would you grow it? It is a good starting point and can then look at the whole system after that.

 

[Clive]

True but if a crop has zero gross margin would you grow it? It is a good starting point and can then look at the whole system after that.

A cover crop has a negative gross margin so I guess yes I would grow a zero gm crop IF it offered something else to the mix and improved my profitability long term

 

[Baling Hay]

A cover crop has a negative gross margin so I guess yes I would grow a zero gm crop IF it offered something else to the mix and improved my profitability long term

A cover crop is only in for 6 months or so and tends to improve the gross margin of the following crop though.

 

[Clive]

A cover crop is only in for 6 months or so and tends to improve the gross margin of the following crop though.

True but its still an example of planting a crop for no direct return though

 

[Baling Hay]

True but its still an example of planting a crop for no direct return though

True, I think we are agreeing but don't realise it yet.

I asked the question "What would the typical gross margins be of all those crops?". Now people are complaining of poor OSR yields and having to use too much slug pellets and sprays etc. etc in the typical WW/OSR rotations. This is going to reduce gross margins.

In your new rotation you have a lot more diversity which will allow for varied planting dates which reduces the amount of machinery required, less chemicals and hopefully better yields. This will result in an overall improved gross margin. Am I not right?

Perhaps I should have asked the question "I wonder what the OVERALL average gross margin per acre would be for this rotation?". That would have made it a bit clearer what I was getting at.

 

[Clive]

True, I think we are agreeing but don't realise it yet.

I asked the question "What would the typical gross margins be of all those crops?". Now people are complaining of poor OSR yields and having to use too much slug pellets and sprays etc. etc in the typical WW/OSR rotations. This is going to reduce gross margins.

In your new rotation you have a lot more diversity which will allow for varied planting dates which reduces the amount of machinery required, less chemicals and hopefully better yields. This will result in an overall improved gross margin. Am I not right?

Perhaps I should have asked the question "I wonder what the OVERALL average gross margin per acre would be for this rotation?". That would have made it a bit clearer what I was getting at.

We are agreeing in all but the terms used I think

Gross margin doesn't show any of the advantages of the machinery and labour spread or risk spread of my diverse rotation where as farm profitability would do

Looking at gross margins tends to ignore the bigger and more important issue of profit and sustainability