UNIT COST CHALLENGE 2000
UNIT COST CHALLENGE 2000
HIGH output from a low-cost system is the goal for Peter Robertson who farms 178ha (440 acres) at Palace Farm near Jedburgh, Roxburghshire. Mainly alluvial soils, vegetables in the rotation, rigorous attention to crop husbandry and strict control of equipment costs are the keys to his success.
Low seed rates are considered essential and underpin the drive for lower growing costs. "Variable costs are more flexible than overheads," insists Mr Robertson. "By reducing seed rate we are cutting costs and reducing the agronomic pressures on the crop throughout the season."
Indeed, sound agronomic advice is valued highly, counsel being taken from Coldstream-based Dalgety fieldwalker Dave Cowe with the aim of reducing input costs.
Late drilling after veg in December 1998 saw a rate of 180.4kg/ha for the Dalgety Masterseeds Claire treated with Sibutol (bitertanol + fuberidazole). Last year the rate dropped to 144kg/ha and Mr Robertson is keen to average 100kg/ha this autumn. Trials in conjunction with Dalgety are evaluating still lower seed rates across large 3ha blocks this season.
"We dont use farm-saved seed because we are using low rates and want the seed to be right. We cant afford to lose plants," notes Mr Robertson. Total seed cost for the Claire was £60.40/ha, based on £335/t.
A joint venture with a neighbour sees vegetables grown across up to 36ha (90 acres) – mainly potatoes, broccoli and cauliflowers for East Scotland Growers. Stale seedbeds before planting, extra herbicide use in the vegetables and residual fertility all drive cereal yields higher and cut costs.
Wheat nutrition includes 185kg/ha of nitrogen in three splits; the first split including 57 and 74kg/ha of P and K respectively to cut application costs. Prudent buying saw product prices of £85, £132 and £111/t for N, P and K respectively.
Sulphur and manganese are applied routinely at 6kg/ha and 1.5litres/ha. Total nutrient cost was £80.35/ha.
Broad-leaved weeds are well controlled in other crops and grass weeds largely absent, so herbicide spending is restricted to a single reduced rate application of Ally (metsulfuron-methyl) and Optica (mecoprop-P) in April costing £12.62/ha.
Disease control benefits from thin stands and routine crop walking to check for disease before spraying. Low disease pressure meant the Claire received 0.33litres/ha of Sportak Delta (cyproconazole + prochloraz) mixed with the pgr at first node, then a half-rate strobilurin fungicide mixed with half-rate Beam (spiroxamine + fuberidazole) to combat Septoria and mildew at flag leaf. A further quarter rate strobilurin went on the ear to protect quality. Total cost was just £42.53/ha.
No insecticides are needed and – thanks to the low seed rate and judicious use of nutrients – lodging risk is low, requiring just one dose of 2.4litres/ha of 3C Cycocel (chlormequat) at first node, costing £3.24/ha. That made for total variable costs of just £199.14/ha.
Operational costs are held down by careful purchasing and maintenance. With just 178ha of cropping and with contract work scarce, Mr Robertson has little alternative.
Most equipment is bought second-hand with a known history from local dealers. Kind soils and a careful maintenance routine ensure long working lives.
Four tractors up to 15 years old work a total of 2100hours/year. Repairs total £1600, fuel £2100 and other costs of ownership were less than £9000, giving an hourly cost of £5.95. Labour is costed at £5.81/hour, based on a single employee working 2343 hours/year, making for an average total tractor and man cost of £11.76/hour.
Establishment is based around ploughing and power harrowing, with workrates of 0.5 and 1.5ha/hour. Low depreciation and repair costs for machines now in their eighth and eleventh years mean low operating costs, despite the low annual outputs of just 165 and 187ha. Adding tractor and labour costs takes total spend to £34.03 and £11.70/ha for ploughing and power harrowing.
Drilling with the 1990 Accord drill follows a similar story, costing £7.99/ha for a workrate of 2ha/hour, giving a total establishment cost of £53.72/ha.
Each pass with the 1987 Vicon spreader covering 5ha/hour costs £3.07/ha, while the 1994 Cleanacres 12m trailed sprayer covering 4.5ha/hour costs £5.79/ha. With five and four passes, total costs are £15.35 and £23.16/ha respectively.
Combining by a neighbour includes straw chopping at a cost of £7050 for 121ha last harvest, thanks to early maturing crops and large fields. That equates to £56.83/ha. Carting adds a further £15/ha.
That gives a total operational cost of £164.04/ha, making Mr Robertsons total variable and operational costs for last years Claire wheat £363.16/ha.
Whether that is low enough to achieve the winning cost per tonne will become clear when his yield figure is announced at the Cereals 2000 event near Lincoln. Watch out for the final outcome in FARMERS WEEKLY.
PETER ROBERTSON
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Farm: Palace Farm, Jedburgh, Roxburghshire.
Variety: Claire
Soil type: alluvial silt.
VARIABLE COSTS £/ha
Seed 60.40
Fertiliser 80.35
Herbicide 12.62
Fungicide 42.53
Insecticide –
PGR 3.24
TOTAL 199.14
OPERATIONAL COSTS
Cultivations 45.73
Drilling 7.99
Spraying 23.15
Spreading 15.34
Harvest/cart 71.83
TOTAL 164.04
TOT COSTS 363.18
Yield* (t/ha) ?
Unit cost*(£/t) ?
* Yield and unit cost will be revealed at the winners presentation at the Cereals 2000 event on Weds 14 June, near Lincoln.
Just how cheaply can you grow a tonne of wheat? That
was what we asked in the BASF/Farmers Weekly Unit
Cost Challenge. Here Charles Abel profiles the first
of three finalists who spent less than £35/t on
variable and operational costs
Plant populations are helping Unit Cost Challenge finalist Peter Robertson (right) drive down production costs. Large-scale field trials with Dalgety agronomist Dave Cowe are helping pinpoint the optimum for his mainly alluvial soils near Jedburgh, Scotland.
UNITCOST 2000
Maintaining profits while prices are low is far from easy. The key is to strike the right balance between yield and quality on the one hand and variable and operational costs on the other. To focus attention on this key issue farmers weekly and agrochemicals supplier BASF, with support from accountant Deloitte and Touche, are staging the Unit Cost Challenge 2000, with £2000-worth of popular fungicide Landmark (epoxiconazole + kresoxim-methyl) as the top prize.
Peter Robertson, Palace Farm, Jedburgh
Farm: Palace Farm, Jedburgh, Roxburghshire.
Variety: Claire
Soil type: alluvial silt.
VARIABLE COSTS £/ha
Seed 60.40
Fertiliser 80.35
Herbicide 12.62
Fungicide 42.53
Insecticide –
PGR 3.24
TOTAL 199.14
OPERATIONAL COSTS £/ha
Cultivations 45.73
Drilling 7.99
Spraying 23.16
Spreading 15.35
Harvest/cart 71.83
TOTAL 164.06
TOTAL COSTS 363.18
Yield* (t/ha) ?
Unit cost*(£/t) ?
* These figures will be revealed at the winners presentation at the Cereals 2000 event on Weds 14 June, near Lincoln.