Nothing sacred as costs come under scrutiny
Nothing sacred as costs come under scrutiny
In the fifth of our articles profiling farmers weeklys 1998
barometer farms, Alan Barker visits Brandsby, N Yorks, to
profile our northern representative
WITH even tougher times ahead for arable farmers northern barometer farmer Keith Snowball wants to maintain profits by reducing production costs.
That means cutting both variable and fixed costs. Any cut is considered, no matter how small, provided it can be achieved without hitting crop yield or quality.
A key part of producing crops as cheaply as possible is the acceptance that not every field has a 10t/ha (4t/acre) yield potential.
Controlling the injection of hard earned cash into new machinery is also vital. "We have all been guilty of keeping machinery over too short a period," says Mr Snowball.
"We maintain all our tackle ourselves and it is surprising how long it can be made to last. We concentrate on strong, sturdy equipment, and avoid electronics. As operators of a major contracting business, we cant stand niggling, unnecessary breakdowns. We have to keep our customers happy."
Keith and brother Alan farm in partnership with their parents (now semi-retired) at High Farm, Brandsby, North Yorkshire. They bought the farm as sitting tenants in 1984, selling the livestock to finance the purchase and opting for a total arable farming operation.
Trading as J L Snowball and Partners, the home farm is just 63ha (130 acres), to which has been added a further 120ha (296 acres) of contract farming, plus general agricultural contracting, apart from root harvesting.
Each year, the family partnership harvests 607ha (1500 acres) of cereals on 14 farms with their three Claas Dominator 306 combines. Fortunately, the farms range from 76-246m (270-750ft) above sea level, giving a good spread of cutting dates.
The land the brothers farm ranges from drought-prone black sand to a clay loam overlying limestone. That has resulted in two basic rotations. Wheat production is maximised on land best suited to the crop, with a rotation of winter rape, two wheats, oats on contract, and two more wheats.
But that could be set to change. "We have a pigeon problem, and yields of winter rape seemed to have peaked at 26-27cwt/acre or 3.2-3.3t/ha. We find we can get some decent yields with spring rape and the crop suits an arrangement we have to swap cereal straw for poultry manure.
"Ploughed in before spring drilling, the poultry manure enables us get away with a lot less nitrogen; last year the crop was grown with no artificial fertiliser and the vigour of the crop helped us get away with virtually no herbicide. The final margin made winter rape look silly," says Mr Snowball.
Spring rape was cheaper to grow, it eliminated autumn spraying, reduced nitrogen use by 88-100kg/ha (70-80 units/acre) and kept herbicide use to under £17/ha (£7/acre).
The brothers also farm 17ha (42 acres) which, by customer preference, is in continuous wheat and is not eligible for IACS payment. Fertility is maintained by manure from a free-range poultry unit.
"It gives us an idea how profitable wheat is without arable aid. Last year, it was not," Mr Snowball admits.
Based on the yield potential of modern varieties, he believes there could be a return to spring barley cropping. It was a cheaper crop to grow and also offered the chance of a stubble turnip crop for over-wintering sheep.
Cultivations hinge around ploughing plus two passes of a power harrow ahead of a 4m drill. A Cambridge roller is used pre-drilling on the black sand.
Target dates for the start of drilling are Aug 20 for winter rape and Sept 20 for winter wheat and barley. But drilling date is not as critical as seed-bed condition, Mr Snowball stresses.
"We never go on the land when we are going to leave a mess." A policy of chopping and incorporating straw has done much to improve the workability of the soil.
UK-produced nitrogen is used on the 24m tramline system to ensure an even spread. Reducing the tramline width was considered, to take advantage of cheaper fertiliser. But Mr Snowball concluded that any savings would be marginal, once the impact of extra wheelings and slower workrates is taken into account.
Seed cost is reduced by using farm saved seed. Sowing rate at optimum drilling date is 125kg/ha (8st/acre), increasing to 180kg (11st/acre) for late drilled wheat.
On sprays, Mr Snowball wants to make his herbicide and fungicide applications more timely. Disease does not normally strike too early, so he wants to spend less early in the season, using just a modest application to keep disease at bay, and then targeting later disease attack when fungicides will be more effective.
Most of the farm lies within the Howardian Hills area of outstanding natural beauty. Mr Snowball says this has had little impact on his farming operations, other than inhibiting the removal of the odd tree and the removal of a hedgerow between two blocks of black sand which could have been conveniently brought together. *
Keith (right) and Alan Snowball have a firm eye on the future – costs are being pared to the bone in a bid to protect profits.
Perfect seed-beds are vital to push cereal yields, says Keith Snowball.
JLSNOWBALL & PARTNERS
• 63ha High Farm, Brandsby, North Yorks, plus 120ha (296 acres) contract farming.
• General contracting business includes 607ha of combining.
• Strict control of fixed and variable costs.
• Rotation shifts likely.
• Cropping:
ave yield t/ha
wheat 8.4-8.6
w barley 6.7
oats 7.4
w rape 6.8
s rape 2.8
plus potatoes, sugar beet and set-aside.
New grain dryer
The one major item of capital expenditure being undertaken this year is a new grain dryer, so drying can be offered to contracting customers. 121mm (4.7in) of rain in the first three weeks of January turned the site to a quagmire, delaying building. But it gave time to visit sales and dealers to locate the least-cost drying equipment. Equally important the lay-off gave Keith and Alan Snowball more time with their families. "Our young children were beginning to think we were called Bye Bye," Keith recalls.