Crop management and gross margins

Economics is one of many possible reasons that farmers might look into biological/regenerative farming systems. Below we present and compare crop management inputs and associated gross margins for three common arable crops, using actual data supplied by Canterbury arable farmers David Birkett and Nigel Greenwood, as well as figures of a typical conventional arable system for the same season.

 

More on regenerative crop management and gross margins

 

Comparing crop management

Crop management programs are complex and difficult to communicate in a nutshell. We discovered the following concept in the FAR newsletter issue 107 and thought it was a great way of comparing management programs at a glance.

The Zadocks scale shows the different growth stages of cereal crops. We have overlaid the agri-chemical inputs for our three different examples to illustrate the differences between the management programs at a glance. The images show that David and Nigel have achieved significant agri-chemical reductions through over their long-term transitions to biological/regenerative systems.

The full input data is available below in the gross margin data.

(click the image to expand it to full size)


Comparing gross margins: Summary graphs

Please refer to the caveats and assumptions outlined at the top of this page to ensure the information below is viewed in the correct context.

The graphs and full gross margins below show the relative yields, input costs and gross margins being achieved by standard conventional approaches versus David and Nigel’s approaches. The graphs present data using standardised rates for cultivation, drilling, spreading, spraying and harvest.

Arable growers will know that another growers results cannot be replicated due to variations in soil type, climate, crop rotation etc. However this data highlights what is possible and can be used to identify opportunities for change.

(click on each graph to view full screen)


Comparing gross margins: Full data

Below is the full gross margin data presented from Excel tables. Thanks to Anton Nicholls from Macfarlane Rural Business for providing the conventional figures.

The tables present growers actual gross margin data alongside ‘Standard’ figures using the rates provided by Anton Nicholls and ‘Contract’ figures using estimated contractor rates for the 2020/21 season. Grower can decide which figures are more relevant to their own context to make comparisons with their own systems more relevant.

If you would like a copy of the Excel spreadsheet where you can input your own data for comparison, email sam@quorumsense.org.nz

(click the images to expand them to full size)

Perennial Ryegrass gross margins

Click to download as an A3 pdf

*If you would like a copy of the excel spreadsheet to benchmark your own system against these example, email sam@quorumsense.org.nz


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Disclaimer: The information, opinions and ideas presented in this content is for information purposes only and does not constitute professional advice. Any reliance on the content provided is done at your own risk. (click here to view full disclaimer).

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Introducing David Birkett and Nigel Greenwood

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Residue management and cover crops