JOHN NIX‘S budgeting bible the Farm Management Pocketbook has just been published for the 35th time and the latest edition includes some unpalatable statistics.
The book‘s revised gross margin figures for many farm enterprises have fallen dramatically following the replacement of individual support payments with the decoupled single farm payment, which is not included in the margins.
“Decoupling of aid payments means they are no longer tied to the crops and livestock produced,” said Prof Nix.
“These payments have comprised between 40% and two-thirds of average crop gross margins and between half and three-quarters of those for beef and sheep.
“Margins have clearly been slashed and if average fixed costs are deducted, all semblance of profit disappears.”