The first recipients left the fields. Winter barley harvest started last week in some areas. Is it possible to win?
- The 2022 harvest has begun. The first harvesters have already appeared in barley
- The yield from the first penal fields is not the highest.
Harvest 2022. First harvest on weak crops
In the first place, barley went into the weak fields under the sickle. In the less fertile sites, the lack of rainfall in May and the first half of June was very difficult and the yield is not very high. The first signs indicate yield results at the level of 4.5 – 6 tons per hectare (the result of about 6 tons in a weaker position can still be considered relatively good). Is it possible to earn with such a return?
In the case of winter barley, the situation is slightly different from that of rapeseed or wheat. A very large part of the barley harvest is for feed, especially on farms that focus on raising pigs. There, the percentage of income is slightly different. However, let’s look at the situation in which the collected material is sold on the spot.
Let us emphasize right away that not all entities that purchase raw materials harvested during the harvest are interested in barley grain – some companies believe that these are very small quantities, and in some cases a purely logistical issue comes to the fore – after the barley is harvested, many farms will begin to harvest Rapeseed, as well as triticale harvest from vulnerable stalls. So the receipt of barley can indicate storage problems in case of delays in transportation from intermediaries.
Harvest 2022. Barley prices drop
Barley prices are closely related to the valuation of other grains. Unfortunately, the downward trend over the past dozens of days or so has led to a significant deterioration in the income that can be obtained from the harvest. Currently, barley costs from 1000 to 1200 PLN – depending on the region and the company (however, the price list changes every day). Suppose in our calculations the amount of PLN 1000 / ton of purchased grain.
We assume that the seed cost is PLN 200/JD and the seeding rate is PLN 1.5/ha, which gives us the seed cost of PLN 300. The biggest unknown is fertilizer – here the spread was huge. Some of the farms that bought nitrogen in August of last year can finish the deal by closing it in the amount of about PLN 2000 / ton. However, there is also the lion’s share of farmers who have paid 4,000 zlotys for rock salt. Contrary to many opinions, only a small part of the farms completely abandoned nitrogen fertilization, although it must be admitted that many farmers reduced doses of N. nitrate 34% We will get the cost of nitrogen fertilization at the level of PLN 1,200 / ha. In addition, 200 kg of NPK fertilizer before sowing, for which we will assume the price of PLN 3,000 / t (yes, we know, there are no such prices anywhere, but for the calculations we use a rate centered between August 2021 and the current amount suggested by distributors), giving us an additional PLN 600 for the cost of fertilization.
Plant protection valued at PLN 600 (autumn herbicides, two fungicide treatments and canopy regulation) + foliar feeding increases the total amount to 2800 PLN. In addition, there are costs for the type of fuel (obviously depends on the intensity of agricultural technology and the moment of purchase) and being derived from the cost of this harvest. In the case of a set of services, there are different prices, and PLN 400, according to many opinions, is the minimum for this year. By the way – tell us the prices for collection services in your area.
Profits can be an illusion
In the case of our calculations, the costs incurred are 3600 PLN / ha. So this will be the profitability limit. At the price of PLN 1000 / t, the yield at the level of 3.6 t / hectare restores only the cost of production. With 5 tons, we get only 1400 PLN … So almost nothing. Given the high production costs and net profits of this amount, many farms will not have the opportunity to start production with an empty card in the fall and it will be necessary to use extended payment terms (the share of approved purchases in total sales the number of enterprises is already very high). With 7 tons, we earn, for example, purely PLN 3400, but in fact what are we buying with this amount? With the current prices of NPK fertilizers, even such an income would not allow us to buy a ton of multi-components, while even two seasons ago – at a much lower price than barley – an income of 3.4 thousand PLN would allow us to buy more than two tons of NPK.
Winter barley cultivation cost model:
Seeds – 300 PLN
Fertilizer – 1800 PLN
Paper feeding – 100 zlotys
Plant Protection – PLN 600
Insurance, KRUS, taxes – 300 PLN
Harvest with your harvest – PLN 250
Fuel (ploughing, sowing, protection, fertilization) – PLN 250
Total: 3600 PLN
Of course, the situation may be slightly different for each farm – the farms that bought the fastest fertilizers are in the best condition (after all, almost 50% of all costs). We can also add the direct payment to income, but in the face of high inflation a smaller and smaller percentage of farm income is becoming.
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