Scotland Rural Development Programme 2007-2013: Rural Development Regulation (EC) No 1698-2005

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OPTION 22: CREATION, RESTORATION AND MANAGEMENT OF SPECIES-RICH GRASSLAND

Gross margin - arable/intensive grassland

Non- NVZ

NVZ

Winter Barley

£385.00

Spring Barley

£282.00

Livestock' Gross Margin (average) - intensive grassland

£494.23

Livestock' Gross Margin (average) - intensive grassland NVZ's

£469.47

Gross Margin average:

£387.08

£375.75

6.3% interest on Tenant's Capital saved

£35.53

£35.53

Average gross margin (net of savings) A:

£351.54

£340.22

per ha

Gross margin - extensive unimproved grassland

Livestock' Gross Margin (average) - non-intensive grassland

177.98

Livestock' Gross Margin (average) - non-intensive grassland NZV adj

£168.71

75% 'beef suckler, sheep & dairy followers' production

133.48

£126.53

Adjusted gross margin B:

£133.48

Income foregone (loss of output):

Gross Margin A less Gross Margin B:

£218.06

£213.69

per ha

Additional costs:

Weed control by topping (twice) during establishment

£49.40

Cost spread over 5 years:

£9.88

Overall cost:

£227.94

£223.57

per ha

*Average Tenant's Capital
for
Farm Types: Scotland General Cropping Farms & Mixed Farms

£564.00

forage area

NVZ Adjuster

£ NVZ

GM per cow

GM per ha

ha per cow

GM per ha

*Upland/Lowground Suckler Cows - mainly silage diets

Feb-Apr

0

0

0.52

-

May-June

17

30

0.56

-

Aug-Oct

26

41

0.64

-

Average =

23.66

23.66

Dairy Cow - silage ad lib

av. Annual yield 7,000 litres

1290.75

0.4975

0.94

1216.49137

GM ewe

GM per ha

Crossbred Breeding Ewes - Finished/store lamb

Upland

16.01

128.08

0.125

-

Lowground

22.93

208.4545455

0.11

-

Av. Upland/lowground

19.47

168.27

-

168.27

Average 'Livestock' Gross Margin

494.23

469.4731191

forage area

NVZ Adj

£ NVZ

GM per cow

GM per ha

ha per cow

GM per ha

*Upland/Lowground Suckler Cows - mainly silage diets

Feb-Apr

0

0

0.52

May-June

17

30

0.56

Aug-Oct

26

41

0.64

Average =

23.66

23.66

Replacement heifer rearing (average)

342.00

1

342.00

per 100 ewes

Crossbred Breeding Ewes - Finished/store lamb

Upland

1601

128.08

0.125

Lowground

2293

208.45

0.11

Av. Upland/lowground

1947

168.27

0.1175

168.27

Average 'Livestock' Gross Margin - non-intensive improved grassland

177.98

170.09

Assumptions: Normal grass production with application of 220 kg N/ha and 25% reduction in productivity when no fertiliser applied

Page updated: Wednesday, May 05, 2010