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Harvest Preview


How to save fixed costs at harvest M


aking savings by reduc- ing fi xed costs can feel like a daunting task for


many growers, but it can be easier than you think to identify where costs should be trimmed. Strutt & Parker will be using the 2019 Cereals event to discuss smart ways for arable farmers to save money on their overhead costs. The two-day show takes place on 12-13 June at Boothby Graffoe, Lincolnshire. Benchmarking fi gures show


that the total labour and pow- er costs on the top-performing units are under £300/ha, while they can be almost double that on the highest-cost farms, says Strutt & Parker farming consult- ant and senior associate director George Badger.


“This suggests that there is scope to reduce fi xed costs on many holdings by £100/ha or more,” he adds. Mr Badger says it is often pos- sible to fi nd areas where savings


can found without the need to go forensically through the business accounts. An easy starting point is for growers to look at their ma- chine capacity.


Good indicator For example, a good indication of the right size of combine required can be obtained by dividing the number of hectares harvested by the header width in metres. “A farm with a well-utilised combine will cut some 70ha per


metre of header width, with a 10m header managing at least 700ha. An under-utilised ma- chine might cut less than half of that so, in that sort of situation, it might be worth looking at shar- ing with a neighbour.” Mr Badger says sharing a ma-


chine with a neighbouring farm does not have to involve a com- plicated joint venture. Collabora- tion can come in different forms and can be done informally, he explains.


>>


Combine harvesters can be shared informally – without a written agreement





There is scope to reduce fi xed costs on many holdings by £100/ha


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JUNE 2019 • ANGLIA FARMER 51


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