Spring Crop Choices in the UK

[parsley]

Spring Malting Barley has a 10 karat sheen to it, don't you think? :

***ALL QUOTES IN BRITISH POUNDS***


Single Farm Payment 210
Projected Nov Price 207
Projected Yield/Hectare 6.5
Crop Output/Hectare 1346
Total Output/Hectare 1556
Seed 55
Ferilizer 90
Crop protection 90
Total Variable Cost/Hectare 235
Gross Margin/Hectare 1321


Ah, being part of the Commonwealth is grand.

Parsley

[wilagro]

Don't you think that this is totally irrelevant to Canadian producers? Their system is different from ours in many respects. Or are you contemplating re-locating? If so..ta ta, and best of luck.

[parsley]

Here's another choice a farmer has in the UK

SPRING MILLING WHEAT

Spring Choices

Sitting down and comparing!

In Canada, how do we get Government and professionals even interested in this kind of calculating, let alone providing it to farmers?

UK Farmer can chose to grow SPRING WHEAT MILLING

Single Farm Payment 210
Projected Nov Price 160
Projected Yield/Hectare 6.7
Crop Output/Hectare 1072
Total Output/Hectare 1282
Seed 62
Ferilizer 110
Crop protection 95
Total Variable Cost/Hectare 267
Gross Margin/Hectare 1015

Good information for a farmer.

I have other UK crops for farmers to compare returns, beans, peas, flax, etc.

Parsley

[boarderbloke]

say pars, what do the flax numbers look like over there??

[charliep]

Hopefully all farmers are doing this type of number crunching for their business. Government and Sask Ag in particular have been providing this information (based on average costs) for years. All consultants I know start with developing the cost and cash flow side of an individual business in making marketing recommendations/developing a plan.

Averages are okay but everyone needs to know their individual costs (not an average or those of their neighbor) to make informed decisions. If a farmer fails to plan, they plan to fail.

[parsley]

SPRING LINSEED

Farmers choice to seed, boarderbloke

British pounds


Single Farm Payment 240
Projected Nov Price 300
Projected Yield/Hectare 1.6
Crop Output/Hectare 480
Total Output/Hectare 720
Seed 60
Ferilizer 70
Crop protection 70
Total Variable Cost/Hectare 200
Gross Margin/Hectare 520

Parsley

[boarderbloke]

thanks, Pars.

[parsley]

wilagro,

Now, I can understand why you don't care about grain pricing. About grain income!

Other farmers, though, think it is important to have a benchmark, and you get one by knowing what other farmers are paid, and spend.

My my. Groan.

Back to the sand, wilagro. Does your head ever get sore?

[parsley]

EU Malt Prices 2 Row
2007 Crop

US $DOLLARS


Oct/06 $425
Nov/06 $450
Dec/06 $475
Jan/07 $460
Feb/07 $460
Mar/07 $490
Apr/07 $495
May/07 $560
Jun/07 $560
July/07 $600
Aug/07 $680
Sept/07 $750
Oct/07 $805
Nov/07 $810
Dec/07 $780

Parsley

[parsley]

EU Malt Prices 2 Row


2008 Crop



US $DOLLARS/tonne



Apr/07 $475
May/07 $560
Jun/07 $560
July/07 $580
Aug/07 $600
Sept/07 $700
Oct/07 $740
Nov/07 $700
Dec/07 $725

Parsley

[grassfarmer]

Well said Wilagro, I often think the same with the endless CDN/US price comparisons.
To highlight the UK scenario better arable land in eastern England averaged over CDN $9000 per acre last year but larger tracts of farmland often sold in excess of $13,000 per acre. How much of your margin is eaten up paying for the land at these prices? Much of that expensive land was sitting under water last summer too so don't believe everyone over there is getting rich.

[Lifer]

What is their rent?

[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.