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Scotland Rural Development Programme 2007-2013

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OPTION 9: STOCK DISPOSAL

For Hill Breeding Ewes - Store lamb & ewe lamb production & Hill Ewes to Terminal Sire - Good Inbye Land

Income foregone:

Gross Margin

£

per head

Conversion factor

£

per ha

Average gross margin (after forage) for hill breeding ewe - store lamb & ewe lamb production and hill ewes to terminal sire.

£ 11.70

less 6.3% interest on Tenant's Capital saved

£ 1.62

Income foregone:

£ 10.08

Additional costs:

Additional shepherding costs per ewe: 0.5 hour/ha/year @ £7.82 per hour, assuming 1.25 ha per ewe

3.13

Transport and gathering

2.50

Sub-total

15.70

per head

1.25

19.63

per hectare

Overall cost:

15.70

per head

1.25

19.63

per hectare

Tenant's capital: 2/3rd of total variable costs incl. Forage plus 1/2 (ram replacement and ewe value)

Average total variable costs per ewe:

£ 15.44

2/3rd of total variable costs (costs generally skewed towards beginning of year)

£ 10.30

Average fixed costs (ram replacement and ewe value) per ewe:

2.99

+

28

£ 30.99

1/2 of fixed costs (generally spread more evenly in the year):

£ 15.49

Average Tenant's capital per ewe

£ 25.79

Interest on Tenant's capital

£ 1.62

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Page updated: Tuesday, April 1, 2008