Pricing whole crop

Jerry

Member
Mixed Farmer
Location
Devon
Been approached by a dairy farmer to grow some while crop for him. Never been involved in such a deal before and wondered how people set a price for the crop.

Will probably be winter barley or maybe wheat.

Deal is to sell him the crop. We do the work utilising existing contractor for main operations. So our variable costs in relation to this crop would be well known.

But how do people value the output tonnage of the crop?

Thanks
 
Been approached by a dairy farmer to grow some while crop for him. Never been involved in such a deal before and wondered how people set a price for the crop.

Will probably be winter barley or maybe wheat.

Deal is to sell him the crop. We do the work utilising existing contractor for main operations. So our variable costs in relation to this crop would be well known.

But how do people value the output tonnage of the crop?

Thanks

Did it just once a while ago and it yielded 14 tonnes per acre but no weighbridge involved so was a bit of a guess. We grew it to the point of harvest. The buyer paid for the harvesting costs and we got £30/tonne based on the 14 tonnes. It was only 15 acres though so not much at all.
 

Gilchro

Member
Location
Tayside
The way I'd suggest is:
Wheat price on a date (1st July?) x expected yield/acre + 1.5 tonnes of straw at £20?/tonne less combining and carting at £40 an acre divided by freshweight yield (weigh a trailer and count out the loads)

E.g. £120/tonne x 3.5 tonnes/acre = £420/acre + straw @ £30/acre = £450.
Less combining at £40/acre = £410
Divided by yield of 14 tonnes, £29/tonne.

Of course looking at that, you could negate combining and carting with straw and just do it on the grain value & yield.
 

The Son

Member
Location
Herefordshire
I have someone doing some for me, he will plant and look after the crop on his land, we then harvest and purchase the product at an amount per % dry matter per tonne. Plan to weigh a few trailers and average it out.
 

Great In Grass

Member
Location
Cornwall.
I have a chart listing the cost of producing some forage crops can't remember where it came from though.:scratchhead:
 

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rusty

Member
I bought a standing crop of winter wheat. Contractor had yield meter on his Class chopper. We test weighed a few loads to calibrate the forager and I also did a dry matter test from cthe clamp end in a microwave . I paid £85/ t dry matter and the harvesting and carting cost another £15/t. Farmer got almost£450/acre which was better than I was expecting he would get but yielded well.
 

DRC

Member
@Gilchro

Thanks for that. But I must be having a stupid moment.

Where do you get the 14t yield from??
Some whole crop is harvested green , I presume. My barley was ready to combine , but put through a forager with a corn cracker in . Think they then add home n dry to it , on the pit.
 

Jerry

Member
Mixed Farmer
Location
Devon
Some whole crop is harvested green , I presume. My barley was ready to combine , but put through a forager with a corn cracker in . Think they then add home n dry to it , on the pit.

So 14t/a green /wet equates to 5t/a dry as normally combined?

Is that a standard sort if equation?
 

Jerry

Member
Mixed Farmer
Location
Devon
Ok. New question as it turns out they want us to grow grass. Not while crop.

That's fine and has some advantages. Will do the ground some good as well especially if I can get my hands on some of his slurry as part of the deal.

Looking for a 3 to 5 year ley with approximately yield of 20t/a in year one dropping to 16t/a year two onwards.

Target is 30% dry matter at so much a tonne. Either baled/ wrapped or forage wagon into pit.

Price will have to reflect harvest method as cost vary by system.

How do you value grass in such a system /deal?

Or Do I work it backwards as if it was a rent ? So target £x per acre and value per tonne based upon output?
 

Wilts

Member
Location
North Wiltshire
you can take a view of expected grain yield and straw value and it being taken off earlier with no harvest weather risk.. trying to buy it by dm% is still a bit of guess work... take two samples and they'll probably be different. barely 3t x£100 straw 1.5tx£40 = £360 an acre.. makes maize look the better buy with spring planting too
 

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Red Tractor drops launch of green farming scheme amid anger from farmers

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quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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