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Scotland Rural Development Programme 2007-2013

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OPTION 11: MANAGEMENT OF SCRUB

Non- NVZ

NVZ

Income foregone:

Average gross margin (after forage) for hill, upland and lowground breeding ewe - store lamb & finished lamb production.

£ 15.62

£15.49

6.3% interest on Tenant's Capital saved

£ 1.92

£1.92

Income foregone per head:

£ 13.70

£ 13.58

Av. Production loss per head x 1.0 ewes removed per hectare.

per ha

£ 13.70

£ 13.58

Additional costs:

Away-wintering ewes @£17/ewe, (including cost of haulage &gathering @£2/ewe)

1

ewe

@

£17.00

per head

£ 17.00

£ 17.00

Contractor cost for coppicing and scarifying

£ 25.00

£ 25.00

Additional management per ha

5

hours

@

£7.82

per hour

£ 39.10

£ 39.10

Sub-total

£ 94.80

£ 94.68

Overall cost:

£94.80

£94.68

per hectare

For Hill Breeding Ewes - Store lamb, ewe lamb production & to terminal sire; Upland - crossbred ewe production; Crossbred Breeding ewes & Lowground Breeding Ewes - Early finished lamb

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:

£ 20.75

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

£ 13.84

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

3.06

+

30.09

£ 33.15

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

£ 16.58

Average Tenant's capital per ewe

£ 30.42

Interest on Tenant's capital

£ 1.92

DATE OF LAST CHANGE:

6/10/06

Revised by:

DB

Calculation

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Page updated: Tuesday, April 1, 2008