Winter oilseedrape is best break crop regarding 21 gross margins in UK

UK feed wheat futures continued their sterling led rally. The recent rally has gone against the trends seen in global wheat markets, with Chicago wheat futures (Dec-20). Next to this rising feed crop, oilseedrape is also in a very good position.

 

AHDB did a study on potential gross margins for crops in 2021 in order to help for sowing decisions in autumn 2020. 

The outcome of the study of AHDB is that the prediction for gross margins for Oilseedrape increased significantly regarding the market data for all crops in this new season. Only Winter Milling Wheat is predicted to have a better gross margin for harvest next year. This is a strong incentive to plant wheat and oilseedrape for harvest 2021.

Besides different problems with Oilseedrape Pest Management, it is still a very profitable option, what is of course true not just for UK, but for all countries in Europe as prices should remain stable or increasing.

When we look at the margins, we have to think on the variable cost spent. Crops with a lower nitrogen input perform for sure, more favourably on a return for capital employed basis. Crops with a lower input are much more attractive for planting when financial pressures increase. In this challenging times it is important to consider the margins of crops. 

Find more to this interesting topic here!

 

Gross margins for harvest 2021 - ADHB, The Agriculture Budgeting and Costing Book (Andersons)
 Gross margins for harvest 2021 - ADHB, The Agriculture Budgeting and Costing Book (Andersons)