Spring Crop Choices in the UK

[grassfarmer]

I'm not up on current land rental prices but know that very little land over there is rented out on a cash basis like it is here. Long term farm tenancies were probably paying around $120 an acre back in 2000. We paid as much as $400 an acre for 6 month pasture rental pre 2000. That was chasing extra forage acres to be eligible for "extensification" subsidies. Different world - different systems - different problems. No relevance to current grain prices in Canada or the cwb.

[FarmRanger]

Ok, let me get this straight.
So what you’re saying is that our having lower grain prices than everyone else in the world is a good thing because it devalues our farmland?

[charliep]

The point of the U.K. maltsters presentation was the following.

Farmers in the UK (and Canada) make decisions about to grow (including pasture for livestock) based on profit potential per acre.

Barley production in the UK, Canada and for that matter the world has been declining. A strong indication that barley profit potential per acre is declining relative to other alternatives.

UK malsters have recognized this and are working to towards stronger value chain relationships and profitable farmer prices to encourage forward contracting/other arrangements. UK brewers and distillers have been willing to take on more risk in innovative programs to ensure adequate volumes contracted.

Moral: In the UK, malt barley is moving from a commodity to high valued product in a value chain. This requires all members of this chain to work together to meet each others profit objectives, product requirements and abilities to manage risk.

[grassfarmer]

No, what i'm saying is that comparing theoretical returns from grain production in a country half way around the world with a totally different land base, production costs and growing systems and using that to attack the cwb is juvenile nonsense.
It is all theoretical anyway - do you think they don't get poor crops, wet harvests, crop failures, no harvests there??

[agstar77]

In other words CL, show me the money !!Maltsters have not been willing to pay enough. Growers are willing to do whatever it takes if the returns are there.

[FarmRanger]

You'd think that maltsters would be falling over themselves trying to build plants close to the cheap barley, wouldn't you?

I wonder what's stopping them?

[Lifer]

So I would understand from you grassfarmer. That learning or trying to understand what is happening in other countries isn't important.

I guess you would say "If it ain't happening in Canada it ain't happening".

[charliep]

Agstar77

Perhaps the maltsters are paying enough but the price signals aren't getting through to farmers. Maybe if they did (as in an open market like the UK), farmers would grow more malt barley. As flawed as the CashPlus program is, the situation will have improved in 2008/09 - there is a relationship between what the maltster pays and the farmer recieves. At some point, you will have to explain the 75 cent/bu hold back Vader has bragged about in previous threads.

[parsley]

agstar,

What about this:


Farmers had grain in the bins.
"Growers are willing to do whatever it takes if the returns are there."

Maltsters wanted to buy it.

Technically couldn't.

Maltsters IMPORTED their barley.

Where's the glitch?



down




down



down





down


Yup.

ata(According to agstar).......drum roll

yup......
Walmart.

Parsley

[parsley]

Gleaned from the Barley Growers Convention:


2007 crop cereal harvest 1.66 Billion tonnes

World's largest crop ever

89 million tonnes more than 2006


Not enough.



Now do you suppose, grassfarmer, information like this gives Western Canadian farmers a little better inkling of what might be more profitable, what is happening in the world?

Or should we keep buying old Gestetner stock certificates from ads in the Western Producer? Especially the ink refill ones?

Parsley

[charliep]

Interesting article in this week's e-malt on the UK. Note that UK maltsters use the same amount of barley as the entire 2006/07 malt barley pool (page 50 of the annual report".

Quote - "UK: Maltsters to purchase 1.86 million tonnes of barley from 2008 harvest
UK maltsters are likely to purchase around 1.86 million tonnes of barley from the 2008 harvest according to the Maltsters Association of Great Britain (MAGB), Farmer’s Guardian reported February 19."

Also note from this presentation that world malt barley demand is growing by 500,000 tonnes per year.

[parsley]

Lakenheath, this isn't durum, it's winter feed wheat, but it's revealing.

Winter 1st FEED WHEAT
***ALL QUOTES IN BRITISH POUNDS***


Single Farm Payment 210
Projected Nov Price 145
Projected Yield/Hectare 10
Crop Output/Hectare 1450
Total Output/Hectare 1660
Seed 50
Ferilizer 130
Crop protection 160
Total Variable Cost/Hectare 340
Gross Margin/Hectare 1320





Winter @nd FEED WHEAT
***ALL QUOTES IN BRITISH POUNDS***


Single Farm Payment 210
Projected Nov Price 145
Projected Yield/Hectare 9
Crop Output/Hectare 1305
Total Output/Hectare 1515
Seed 50
Ferilizer 140
Crop protection 160
Total Variable Cost/Hectare 350
Gross Margin/Hectare 1165



FARMERS GET CHOICES

DA Farmers are stuck with a constipated institution that causes bad breathe and flat feet.


Parsley