Costings favour corn over horn

Higher grain prices will pave the way for a “real farming profit” for arable producers in 2011, whereas the associated rise in feed costs has left the livestock sector reeling.

That’s the main conclusion from the latest (71st) edition of the Agricultural Budgeting and Costing book, which has just landed on my desk.

It predicts feed wheat gross margins will be up by over £150/ha from the May 2010 edition at £673/ha. In contrast, the gross margins for lowland autumn calving suckler herds and spring lambing flocks have been revised down by £51/head and £3.50/head respectively.

Pig producers are particularly hard hit, and will be left with virtually no margin once overheads, rent and finance have been included, it suggests.

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