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Scotland Rural Development Programme 2007-2013

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OPTION 7: MANAGEMENT OF BUFFER AREAS FOR FENS AND LOWLAND RAISED BOGS

Income foregone:

Gross Margin

£

Cereal production to extensive lowground suckler

Winter Wheat

£434.00

per ha

Winter Barley

£385.00

Spring Barley

£282.00

Gross Margin (average):

£367.00

Upland/Lowground Suckler - silage diets (average)

£23.67

70% lowground suckler production

£16.57

Net loss

£350.43

Additional costs:

Annual charge to service capital and interest required to stock 1 hectare, i.e. purchase 1 cow @ £1000 @ 6.3% over 7 yr herd life

£181.10

per ha

Overall Cost - Cereal production to extensive lowground suckler (A)

£531.53

per ha

Intensive to extensive lowground suckler

Lowground Suckler (average)

£23.67

70% lowground suckler production

16.57

Overall Cost - Intensive to extensive lowground suckler (B)

7.10

per ha

Average Cost (average of A & B):

269.32

per ha

Overall cost:

269.32

per ha

Ref: SACFMH 2005/2006
Assuming stocking density on extensively managed grazing = 1.0 LU/ha

per cow

per ha

**Upland/Lowground Suckler Cows - mainly silage diets

Feb-May

-4

0.00

May-June

17

30.00

Aug-Oct

26

41

Average =

23.67

Upland/Lowground Suckler Cows - mainly silage diets
Assuming a 30% drop in production with no application of fertiliser and pesticides.

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Page updated: Friday, July 20, 2007