High yields, but even higher costs

TILLAGE farmers who have completed 2011 financial reviews have found that yields were high, in general, but costs (especially for fertiliser, machinery and fuel) were higher than anticipated.

Machinery is by far the largest expense (about one third of total costs), made up of running costs (fuel, repairs, etc), machinery repayments, and depreciation (of older machinery).

It is definitely worthwhile looking at machinery costs and talking to your advisor about replacements, etc.

To start the debate, the average cost of machinery amongst tillage farmers working with Teagasc in 2010 was in the €320 to €365 per hectare range.

How do you compare?

The logical step after looking at your 2011 figures is to look at next year’s farm budget.

Conacre prices are not in line with current grain prices (what’s new!), and price rises are likely in fuel and fertiliser. Use the Teagasc Crop Margin Calculator (available free on the www.teagasc.ie website) to show land-owners how unrealistic their expectations are for conacre rental rates.

Use five-year averages for yield and forward grain prices.

Get up to date with soil sampling/fertiliser planning, for scope to save on fertiliser.

Also, come to your local tillage seminars to hear the latest nitrogen research results from Oak Park, and come to the National Tillage Conference (January 25, 10.30am, Lyrath Estate Hotel, Kilkenny).