Sowing seeds of profit
Analysing the margins on a typical 210ac tillage holding to make the best returns
This week we continue our series of analyses of the most common farm enterprises. The gross margins per acre are outlined for winter oats, wheat and oilseed-rape, along with the same for spring barley.
The figures are then used to calculate the likely overall profitability of a typical 210ac tillage farm.
The budget is based on a farm in 2010 with the following crops: 175 tonnes of spring barley from 70ac, 325 tonnes of winter wheat from 100ac and 70 tonnes of winter oilseed rape from 40ac. All the figures are based on averages calculated from actual farm accounts.
Total farm debt including leased equipment is €75,000 and it's participating in REPS 4.
It shows the stark reality regarding the profitability of many Irish tillage farms.
Next week, we'll have a full analysis of all the main beefing systems.
Martin O'Sullivan is an agricultural consultant based in Carrick-on-Suir, Co Tipperary. His annual Farmers' Handbook is available nationwide and online in two weeks' time