Output up, input down still key – Velcourt

By FWi staff

HIGH output and low costs remain the keys to top profits, says farm management group Velcourt.

It expects a 400ha (1000 acre) farm, under Velcourt management, to produce a gross margin of 235,500, 16% higher than that achieved by the same-sized farm of average performance as defined in Nixs Farm Management Pocketbook 2001.

High yields are the main driver. Velcourt predicts wheat yields will average 9.55t/ha (3.86t/acre), which, at 74/t, will produce a gross margin of 692/ha (280/ha), almost 19% higher than the average performer.

Winter barley and oilseed rape gross margins are put at about 13% and 12% above average, assuming values of 71/t and 130/t.

The overall gross margin assumes that wheat takes half the cropped area, barley and oilseed rape 20% apiece and set-aside 10%.

This will produce a net farm income of 100,500, the company claims, almost 200% higher than the average pocketbook farm, thanks to lower costs.

Velcourt clients have about 40% less working capital than average tied up in their businesses, says the company.


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