Archive Article: 2000/09/29
Why production costs must be spot-on
Knowing production costs is crucial if farmers are to get a proper return from the market.
Too often things get over-looked or under-estimated. Its a long list including: Rent on owned land, interest on working capital and wages for family labour.
But the same is true of some groups which compile industry costings. Universities and institutions also often fail to reflect full production costs in their reports and studies.
With more buyers and sellers trading on fixed price contracts, the importance of knowing break even values has never been greater.
Unless costings include every single element, farmers will find themselves short-changed.
Sow untreated wheat and take risky gamble
As good cereal margins become a fading memory, growers are trying hard to find ways to boost them.
Backed into the corner of near zero profitability, they are sowing untreated grain taken straight from store, much as nature intended.
But as most growers are only too well aware, nature often needs a helping hand. Using farm-saved, instead of certified, seed has always been an option. But sowing without proper cleaning, testing and appropriate treatment is a heavy gamble.
Quota prices too high in view of milk market
Why are milk quota leasing prices so high on the back of promises?
Although demand may have firmed slightly, quota prices rose before most producers heard about an increase. In addition, daily output of milk is still below prediction for most producer groups. Only in the past month has national supply matched quota prediction.
Although it is unlikely that milk production will be severely under quota, producers are good quota managers. Wheres the justification for higher quota prices?
So, before leasing or buying more quota this winter, it will pay to reach for the calculator.
Falling hop market oils wheels for mint
Failing to make a mint out of growing hops? Then perhaps it is time to try mint itself?
The novel crop could plug a hole in hop farmers incomes, thanks to an innovative scheme run English Hops and helped by 5b funding.
The group has set up a plant in Herefordshire for distilling oil on-farm from crops such as peppermint and spearmint. Both are proving attractive options compared with hops, the market for which is in terminal decline.
Britain imports big volumes of mint oil each year for use in everything from confectionery to cleaning products.
So these enterprising farmers are doing their bit for Britains balance of payments. And they are securing their own futures at the same time.
Deadly wheat disease strikes in UKagain
Wheat soil-borne mosaic virus has struck again. In addition to the original outbreak farm in Wilts, it has slashed yields on two farms in Kent.
Sadly, this notifiable pathogen is spreading and, once identified, there is no way of cleaning infected land.
Trials run on the Continent, where more than one-fifth of the crop area is infected, show some UK varieties are immune. But others are not and immunity could be overcome, warn experts.
So, if you suspect infection, dont be tempted to conceal your fears.
Hygiene measures may be imposed, but at least experts can help contain the disease and choose varieties for infected fields.
Putting self-interest first could hit national crop output hard.
Plain English absent from MAFFbooklet
Isnt the government supposed to be tackling gobbledegook in official language and reports? Pity it didnt read carefully MAFFs new booklet on forthcoming legislation governing identification for sheep and goats, which comes into force on Jan 1, 2001.
Not only is the booklet unclear, which prompts a phone call to MAFF HQ, but staff dealing with queries seem to be equally muddled.
Oh for a little clarity. At least two things seem clear: First, lambs sent for slaughter next year must carry a tag registering their holding of birth. Second, producers have a full year to comply with the new rules. So much for plain speaking.