Low biomass rape tops gross margin table

Low biomass oilseed rape has topped the gross margin table for next years harvest, with a projected Gross Margin of £962/hectare, compared with £907/ha for first wheat and £730/ha for second wheats, according to John Barrett, Farm Business Manager for the professional farming company Sentry Ltd.

"At Sentry our objective is to deliver added value and to create profits. We do this by managing our crops carefully and cost- effectively in order to produce high, consistent yields and positive gross margins. Looking at what we can realistically achieve next year, winter oilseed rape with its improved pricing, better yielding varieties and lower operating costs, margins are looking very positive for this crop," says John.

He explains that the calculation for gross margins is based on realistic yields which for first wheats is 9 tonnes/ha and for oilseed rape 3.75 t/ha. "In terms of operating costs from initial cultivations through to combining, rape has a significant advantage over wheat, with projected costs of £245/ha for rape and £325/ha for first wheats."

For harvest 2009 his projected figures for first wheats are 9 t/ha yield, giving a gross margin of £907/ha with operating costs of £325/ha.

The projected figures for second wheats are £8 t/ha yield, gross margin £730/ha with operating costs of £317/ha.

But the projected figures for oilseed rape are £3.75t/ha yield, gross margin £962/ha with operating costs of £245/ha.

"The calculations are also based on growing the right varieties in the right way. The introduction of low biomass rape varieties such as Es Astrid to the farm have lead to more consistent, higher yields and plenty of opportunities to minimise input and operating costs, which results in greater gross margins," explains Mr. Barrett.

According to John, Es Astrid yields well and allows some inputs to be minimised and savings to be made. "Being a conventional variety we can save our own seed and make some input savings there. Rape is also less costly to establish than wheat, with two passes with a cultivator drill being sufficient."

John Barrett has budgeted for 190 kg/ha of Nitrogen for the rape, as both Ammonium nitrate and sulphate, compared with 200 kg/ha for the first wheats. "With the escalating costs of fertiliser, this is a key area to look at in the future for all combinable crops," he says.

According to John, the spray bill for winter oilseed rape tends to be a little higher than that of wheat and he has projected a spray cost of £126/ha for wheat and £143/ha for oilseed rape. "With good establishment of rape being so critical to its overall success, a robust herbicide programme, which tends to be costly, is essential, so we just have to bite the bullet on this."

"But if we grow a rape variety with excellent straw stiffness and high resistance to lodging, such as Astrid, we are able to save on growth regulation and the crop is easier and less costly to manage. Astrid also has excellent Phoma stem canker resistance which in some years could reduce the need for one fungicide treatment in a programme or maybe allow a cheaper programme to be used, with no detrimental effects on yields. It also allows more flexible timing of the fungicide as delays in timing are less critical," says Mr. Barrett.

"The shortness of Astrid also allows the crop to be direct combined by our own machinery and labour. It is more expensive to bring in an outside contractor. Being able to harvest the crop faster and more efficiently will reduce machinery and fuel costs. It costs around £78/ha to combine a low biomass rape compared to £85/ha for wheat. With diesel price doubling in the last twelve months, you have to consider all field operations carefully and realise the impact on operating costs. Low biomass varieties save a substantial amount of money nowadays."

"Overall low biomass oilseed rape is looking positive with regard to gross margin but in order to achieve these high margins you need great attention to detail from establishment right through to harvest. Where ever and when ever savings can be made without affecting yield they should be made. The conventional high yielding low biomass variety Astrid is one of the key rape varieties that produce a high seed yield plus a number of opportunities to lower operating costs, thereby help us achieve our profit objectives," says John Barrett.

"Es Astrid continues to be one of the most widely grown winter oilseed rape varieties. Not only does it produce consistently high yields, but it also has the highest Phoma stem canker resistance rating of all conventional varieties on the Recommended List. In addition it has an eight rating for resistance to lodging, an eight rating for shortness of stem and an eight rating for stem stiffness. This all adds up to a high performing, reliable rape variety that is easier and much more cost-effective to manage. In today's climate of increasing costs of diesel, fertiliser and crop protection, farmers need to choose varieties that deliver the yield but at a reduced cost," adds Grainseed Director, John Hardy.

For further comment and information, please contact

1) John Hardy, Director, Grainseed Ltd on 01379 871073 or 07836 582436 or via email at john@grainseed.co.uk

2) John Barrett, Farm Business Manager, Sentry Ltd on 01508 482212 or by email at johnpb@sentry.co.uk