Arable margins look tight for 2010

Profit from arable farming next harvest will be “marginal at best” despite a fall in the cost of some inputs, according to the latest costings from Agro Business Consultants.

It predicted total variable costs for feed wheat will be 28% lower than last year, at £340/ha, mainly because of lower fertiliser prices. This will mean the total cost of production for feed wheat will be down to £96/t, which is £9/t below the forecast price of £105/t. But, if a full rent and finance charge is included, production costs would rise to £113/t, leaving some facing a negative margin.

Growers are advised to market crops carefully and lock into temporary price rises where appropriate.

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