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Arable Farming
Cropping
To drill OSR or not
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<blockquote data-quote="Brisel" data-source="post: 6264088" data-attributes="member: 166"><p>Let's say your labour & machinery costs are £100/acre. The marginal cost of working, sowing, spraying etc an acre is £30 in fuel, overtime, spares, marginal grain storage costs of £5/t & a very small contribution towards depreciation. That leaves £70/acre as "fixed" to cover salaries/drawings, depreciation, insurance etc.</p><p>You farm 300 acres in a 3 course rotation of 2 cereals and 1 break crop.</p><p>Your L&M costs are £100 x 300 = 30K.</p><p>You decide to fallow 1/3. Your machinery costs drop by 30x100=£3k for less work (let's ignore the cost of managing fallow and establishing cover crops for a minute).</p><p>Your fixed costs concentrate to £27k on 200 acres = £135/acre. On a 3.64 t/ac (9t/ha) wheat crop that adds £15/t to your production costs or you have to raise your yield by £35/acre or at £150/t 0.23 t/ac (0.57 t/ha) or make sufficient variable cost savings to fill the gap.</p><p></p><p>Then pay a rent on every acre regardless of whether it is harvested or not and start to think of what it costs to manage a fallow - topping, glyphosate. £20/acre or £2k extra needed. Cover crop - cultivations, seed, topping, glyphosate. A further £13/ac on seed & £27/ac on fuel, overtime etc</p><p>What about the other overheads like accounts, utilities, finance?</p><p></p><p>Feel free to pull apart my maths here. Discuss.</p></blockquote><p></p>
[QUOTE="Brisel, post: 6264088, member: 166"] Let's say your labour & machinery costs are £100/acre. The marginal cost of working, sowing, spraying etc an acre is £30 in fuel, overtime, spares, marginal grain storage costs of £5/t & a very small contribution towards depreciation. That leaves £70/acre as "fixed" to cover salaries/drawings, depreciation, insurance etc. You farm 300 acres in a 3 course rotation of 2 cereals and 1 break crop. Your L&M costs are £100 x 300 = 30K. You decide to fallow 1/3. Your machinery costs drop by 30x100=£3k for less work (let's ignore the cost of managing fallow and establishing cover crops for a minute). Your fixed costs concentrate to £27k on 200 acres = £135/acre. On a 3.64 t/ac (9t/ha) wheat crop that adds £15/t to your production costs or you have to raise your yield by £35/acre or at £150/t 0.23 t/ac (0.57 t/ha) or make sufficient variable cost savings to fill the gap. Then pay a rent on every acre regardless of whether it is harvested or not and start to think of what it costs to manage a fallow - topping, glyphosate. £20/acre or £2k extra needed. Cover crop - cultivations, seed, topping, glyphosate. A further £13/ac on seed & £27/ac on fuel, overtime etc What about the other overheads like accounts, utilities, finance? Feel free to pull apart my maths here. Discuss. [/QUOTE]
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To drill OSR or not
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