Crop price fall puts Virtual Farm under pressure

Lower crop prices are putting pressure on the Farmers Weekly/Savills Virtual Farm outlook.

While 20% of the 2014 wheat crop has been sold, no new crop oilseed has been committed and there is still old crop rape to shift.

Wheat cost £142/t to produce on the model farm in 2013 and looks like returning an average of £168/t ex-farm.

However, the 2014 budget forecasts production costs at £136/t, just about the same as the current new crop wheat harvest price.

The decision has nevertheless been made to go ahead with the replacement of the farm’s combine and some drainage investment.

Read more about the Farmers Weekly/Savills Virtual Farm’s outlook

See more