Scottish Farm Enterprise
Performance Analysis:
Additional Analysis of the 2012-13 Farm
Accounts Survey
Rural and Environment Science and Analytical Services
Agriculture Statistics
19/06/2014
Contents
Introduction .............................................................................................................................................. 3
Executive Summary................................................................................................................................. 4
Summary of Results ................................................................................................................................ 6
Crop Summary........................................................................................................................................... 6
Crop Enterprises ........................................................................................................................................ 7
Dairy and Beef Summary .......................................................................................................................... 8
Dairy and Beef Enterprises ........................................................................................................................ 9
Sheep Summary ...................................................................................................................................... 10
Sheep Enterprises ................................................................................................................................... 11
Summary Table ...................................................................................................................................... 12
Crop Tables ............................................................................................................................................ 13
Winter Wheat ........................................................................................................................................... 13
Winter Barley ........................................................................................................................................... 14
Spring Barley ........................................................................................................................................... 15
Mixed Barley ............................................................................................................................................ 16
Winter Oil Seed Rape .............................................................................................................................. 17
Spring Oats .............................................................................................................................................. 18
Winter Oats & All Potatoes ...................................................................................................................... 19
Dairy and Beef Tables ........................................................................................................................... 21
Dairy Cows .............................................................................................................................................. 21
Dairy Mixed .............................................................................................................................................. 23
Beef: Hill Herds ........................................................................................................................................ 24
Beef: Upland Suckler/Herds Selling Calves as Yearling ......................................................................... 25
Beef: Lowland Suckler Herds .................................................................................................................. 26
Beef: Mixed .............................................................................................................................................. 27
Beef: Finishing ......................................................................................................................................... 28
Sheep Tables .......................................................................................................................................... 29
Sheep: Extensive/Hardhill ....................................................................................................................... 29
Sheep: Finished/Store Lamb Production ................................................................................................. 30
Sheep: Lowland (non LFA) ...................................................................................................................... 31
Sheep: Store Lamb Finishing (long keep) ............................................................................................... 32
Livestock Enterprises with less than 5 holdings in the Quartile Groups .................................................. 33
Description of Performance Measures ................................................................................................ 35
Market Context ....................................................................................................................................... 36
Definition of Terms ................................................................................................................................ 38
Contacts ................................................................................................................................................. 42
Page | 2
Enterprise Performance Analysis 2012/13
Introduction
The purpose of enterprise analysis is to provide a basic assessment of financial
performance of the main farm enterprises in Scotland. This allows individual farmers
and others, with an interest in the agricultural industry, to compare individual
enterprise performance against sector averages. As more results become available in
future years it will also provide a useful guide to performance over time.
The performance of an enterprise is difficult to assess and relies on a number of
factors that cannot be identified through this analysis, such as: natural constraints
(e.g. quality of land, weather, etc.); reason for farming (e.g. financial, personal
satisfaction, etc.); methods of farming (e.g. organic versus conventional production
methods); fixed costs of the whole farm business; the interaction of other enterprises
within the farm business and many other factors.
The results are presented as gross margins, as no account has been taken of the
fixed costs of the enterprises: those costs which are not attributed to a specific
enterprise. These costs could vary greatly depending on the size or type of farm or
enterprise. The results are from the 2012-13 Farm Accounts Survey (FAS), which
centres on the 2012 crop year.
Results are provided as un-weighted group averages for each enterprise and within
each enterprise (where sample size allows) to identify differences between relatively
high performers (those achieving the 25 per cent highest gross margins), the average
for the whole enterprise group and relatively low performers (those achieving the 25
per cent lowest gross margins). Enterprises have been classified as high or low
performers based on their gross margins, though this does not necessarily mean that
high performing enterprises are being managed more effectively. The intentions,
attitudes, reasons for farming and factors outside the control of farmers and farm
managers have not been considered in this analysis.
The analysis examines three measures of financial performance, the main measure is
the enterprise gross margin per head or per hectare, which shows the gross income
(before accounting for fixed costs) from a single unit of output (per head for livestock
and per hectare for crops). Additional measures are; the overall enterprise gross
margin (which shows the overall balance of the enterprise) and the output:input ratio,
(which shows how much gross return is achieved per pound (£) spent per single unit
of output (head/hectare). Enterprise output includes the market value of the output
retained on the farm.
The three measures each provide a different insight into the performance of the
enterprise. Taken in isolation, these figures may provide a misleading impression of
the performance of an enterprise relative to high, low or average performers, or to
different enterprises. It is intended that each measure be taken into consideration
when drawing comparisons based on this analysis.
Page | 3
Executive Summary
This report on enterprise gross margin profitability covers the 2012 crop, dairy, beef
cattle and sheep production year. For many farmers in Scotland this was a period of
sometimes difficult weather conditions for both crop and livestock farmers. The wheat
and barley areas cultivated were both down compared to 2011-12, however spring
oats area increased. Crop yields for wheat, barley and oilseed rape were all lower,
the exception being oats where yield increased.
The range of land types and production systems employed by Scottish farmers means
that not all activities can be covered. However, the results presented in this report are
for as comprehensive range of enterprise types as possible. The main enterprise
types covered are listed below.
Table 1.1 Main Enterprise Types in Survey
Enterprise Type
Crops
Cattle
Sheep
Wheat
Spring Barley
Oil Seed Rape
Spring Oats
Dairy
Beef Hill Herds
Beef Upland Suckler Herds
Beef Lowland Suckler Herds
Beef Finishing
Extensive Hard Hill
Finished Store Lamb Production
Lowland (non LFA)
Store Lamb Finishing (Long Keep)
Number in
Survey
68
195
37
27
42
18
130
38
105
42
122
41
27
The number of other enterprises surveyed can be found in the detailed tables.
Herd and flock sizes either fell or remained relatively unchanged over the same
period. The average dairy herd in the sample fell by around 6% with beef hill
herd/upland suckler down by 5% while ewe flock size remained static. Margins were,
in general, down slightly over the year. However, the demanding weather conditions
impacted on overall enterprise income which fell considerably for many farmers.
With the exception of forage, all crop enterprises in the sample returned a positive
enterprise income (even if small) at the gross margin level.
However, the results for cattle and sheep enterprises show the difficulties in achieving
appropriate gross margins for these activities. For beef hill herds 22% of enterprises
recorded a negative gross margin as did 8% of lowland beef herds. For hard hill sheep
enterprises 17% experienced a loss on gross margins as did 24% of lowland sheep
flocks. With due consideration of the fact that this analysis is at the gross margin level
Page | 4
it is clear that even for those enterprises reporting a positive gross margin they would
still struggle to achieve an adequate return on labour and capital.
The data from the FAS indicates a wide variation in the levels of financial and
technical performance within both crop and livestock enterprises. Wheat and barley
high performing enterprises experienced greater reductions in profitability than the low
performers. Low performers generally held onto their production (area * yield) while
the top performers production fell by 18%. Oil seed rape production and profitability
dropped across all performance groups. Both spring and winter oats enterprises
increased their gross margin across all of the performance groups. Average gross
margin for all potato types increased by £1,500 over the year.
Dairy farm performance groups experienced a reduction in both their gross margin
and enterprise income with the highest performers gross margin down by -5% and
low performers by -14%. The following livestock enterprises saw the top performers
results fall by a greater degree than the average or low performers; dairy followers,
mixed beef & dairy, beef hill herds, beef upland suckler herds and beef lowland
suckler herds. Beef finisher enterprises follow the standard characteristics of top
performers in controlling costs and maximising returns compared to the previous year.
The high performers used both less purchased concentrates than the low performers
and the similar high performers from the previous year (something not seen in the
other beef enterprises). These enterprises also utilised more home grown
concentrates and feed than the other groups.
All performance groups for sheep have lower enterprise gross margins when
compared to 2011-12, with many of the low performers entering negative values.
Enterprise incomes were also down on the year by 30-40%. With the exception of
store lambs finishing (long keep) all other prices and output values were down.
The following table shows the percentage within an enterprise type where the gross
margin was negative for 2012/13
Table 1.2 Negative Enterprise Gross Margins per Enterprise Type
Enterprise Type
% of Total Sampled
Beef Hill Herds
Upland herds Selling Calves (12 months)
Lowland Beef Herds
Beef Mixed Herds
Beef Finishing
Sheep Hardhill
Sheep Store Lamb
Sheep lowland (non LFA)
Sheep Lamb Long keep
22%
8%
8%
13%
12%
17%
9%
24%
11%
The enterprises above still have to account for labour, contacting, power and
machinery, property and rent, de[recitation, finance and administration costs. It is clear
that losses will only increase for these enterprises and the associated businesses.
Page | 5
Summary of Results
Crop Summary
Overall average gross margins for crop enterprises ranged from £623/hectare for
winter oilseed rape enterprises to £839/hectare for winter oats and £4,917/hectare for
potato enterprises (a combination of ware, seed and mixed potato enterprises).
Winter oats and potato enterprises generated the largest gross margins of crop
enterprises.
Where sample sizes were sufficient to allow comparison between high and low
performing enterprises, gross margins of high performers in 2012-13 were around
twice that of low performers, but for winter barley, winter oil seed rape and winter oats
high performers achieved margins around three times that of low the performers;
showing the latter to be less competitive.
For crop enterprises the differences in financial performance between high and low
performing groups was due to the high performers achieving higher sales prices per
tonne, which is expected to reflect generally higher quality; higher yields, producing a
greater volume of output per hectare; and better management of variable costs.
Winter wheat, mixed barley, and oilseed rape have seen reductions in their overall
average gross margin per hectare since 2011-12; down 7 per cent, 4 per cent and 46
per cent respectively. Even though the £/t price increased by around 20%, winter
wheat enterprises experienced a 7% reduction in margins due to lower production
levels ( less area and a lower yield of -17%) combined with increased costs. Mixed
barley margins were also reduced by lower yields and increased variable costs, even
though the £/t price was up by 16%. Winter oilseed rape margins decreased
considerably, down 46%. This was due to reduced yields (down by 30%) and costs up
by 20%. A small 3% increase in £/t price could not offset these changes. Spring oat
margins improved (up 22%) due to an increase in the area grown (higher production)
and a 17% rise in £/t price received. Costs remained stable up 2%.
Taking account of the size of enterprises, potato (£157,000), spring barley (£34,000)
and mixed barley (£53,000) achieved the highest average overall enterprise income.
High performing spring and mixed barley enterprises achieved a considerable
advantage, with overall enterprise gross margins £29,000 higher than those of other
high performing crop enterprises. Spring oats (£17,000) achieved the lowest overall
enterprise income.
In contrast to gross margin results, the group average output: input ratios (the return
achieved per £1 spent), was greatest for potatoes at 3.7, outperforming spring and
winter oat enterprises. Winter oil seed rape generated the lowest ratio. Average ratios
range from 2.1 for winter oil rape seed to 3.5 for spring oats. Of the high performing
enterprises, spring oats achieved the greatest output: input ratio at 4.3
More detailed results, including sample size information, are available from the
agriculture statistics web page, Enterprise Performance Analysis.
Page | 6
Gross margin per Hectare
Output:Input Ratio
Page | 7
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Enterprise Type
£0
£10,000
£20,000
£30,000
Crops
Enterprise Type
Winter Winter Spring Mixed Winter Winter Spring
Wheat Barley Barley Barley Oil Seed Oats Oats
Rape
Enterprise Type
Low
Average
High
£40,000
£50,000
£60,000
£70,000
£0
£200
£400
£600
Winter Winter Spring Mixed Winter Winter Spring
Wheat Barley Barley Barley Oil Seed Oats Oats
Rape
Crops
Enterprise Type
Winter Winter Spring Mixed Winter Winter Spring
Wheat Barley Barley Barley Oil Seed Oats Oats
Rape
Low
Average
High
£800
£1,000
£1,200
£1,400
Crops
Winter Winter Spring Mixed Winter Winter Spring
Wheat Barley Barley Barley Oil Seed Oats
Oats
Rape
£0
£200
£400
£600
£800
£1,000
£1,200
£1,400
Average Gross Margin per Hectare
Enterprise Income
Crops
Low
Average
High
2012-13
2011-12
Crop Enterprises
Dairy and Beef Summary
Average gross margins for dairy and beef enterprises ranged from £142/head for
mixed beef store enterprises to £477/head for dairy followers and £850/head for dairy
cow enterprises (equivalent to 12.1 ppl). Dairy enterprises, including followers and
mixed, generated the highest margins of dairy and beef enterprises.
Where sample sizes were sufficient to allow comparisons we can see that low
performing dairy and beef enterprises generated considerably lower margins. Most
low performing beef enterprises were barely profitable with beef mixed and finishing
making an average loss, ranging from -£54/head for finishing to -£77/head for mixed
High performing finishing and mixed enterprises achieved gross margins between
£370/head and £339/head respectively.
High performing dairy cow enterprises made around twice the average gross margin
compared to low performers at £1,222/head. At £666/head, high performing mixed
dairy and beef enterprises made around five times the margin of low performers.
On dairy and beef enterprises the difference in financial performance was due to high
performers achieving: higher sales prices per head, which reflects generally higher
quality outputs; a greater increase in value due to improved technical performance;
and better management of variable costs.
The dairy follower average gross margin per head increased by 6% compared to
2011-12. Although sale prices fell by 1% to £1,152 per head improved technical
performance, for the enterprise, raised closing values by £200 per head (16% added
value) on the opening valuation. Costs remained stable, up around 1% for the year.
Compared to 2011-12 the average margin for beef upland sucker herds (less than 6
months) fell by 45%. Enterprise performance declined by 5% while costs increased by
28%, mainly due to higher purchased concentrates. Beef upland suckler (12 months)
gross margins fell by around 17% compared to 2011-12, as did beef lowland suckler
herd margins. Although the sale price per head increased by 7% and 9% respectively,
added value (performance) only increased by 4% and 2% in each case. Cost
increases in roughages, home grown and purchased concentrates pushed margins
lower than in 2011-12. Beef forward stores and mixed beef herd margins improved by
26% and 17% respectively. Beef forward store enterprises added 10% of additional
value while lowering concentrate feed bills . Beef mixed herds saw average sale
prices rise 9% compared to 2011-12.
Taking account of the size of enterprises, dairy cow (£145,000), mixed dairy
enterprises (£44,000) and dairy followers (£42,000) achieved the highest overall
enterprise income. Beef forward stores (£9,000) and mixed (£9,000) achieved the
lowest. In contrast to gross margin results, the average output: input ratios, the return
achieved per £1 spent, was greatest for dairy cows at 1.8. Beef hill herd enterprises
had the lowest ratio, at 1.3.
More detailed results, including sample size information, are available from the
agriculture statistics web page, Enterprise Performance Analysis.
Page | 8
Gross Margin per Head
Output:Input Ratio
Page | 9
0.0
0.5
1.0
1.5
2.0
2.5
-£200
Enterprise Type
Enterprise Type
Dairy and Beef
Low
Average
High
Low
Average
£200
£0
High
£400
£600
£800
£1,000
£1,200
Dairy and Beef
Gross margin per Head
-£50,000
£0
£50,000
£100,000
£150,000
£200,000
£250,000
£300,000
£0
£200
£400
£600
£800
£1,000
£1,200
Enterprise Inome
£1,400
Enterprise Type
Dairy and Beef
Enterprise Type
Dairy and Beef
Low
Average
High
2012-13
2011-12
Dairy and Beef Enterprises
Sheep Summary
Average gross margins for sheep enterprises ranged from £14/head for store lamb
finishing enterprises (long keep) and extensive/ hardhill sheep to £32/head for store
lamb production and £51/head for crossbred ewe production.
Where sample sizes were sufficient to allow comparisons we can see that low
performing sheep enterprises generated considerably lower margins. With the
exception of crossbreed ewe production all other low performing sheep enterprises
made an average loss, ranging from -£3/head for store lamb finishing enterprises
(long keep) to -£24/head for lowland sheep whereas high performing enterprises
achieved gross margins between £30/head and £74/head respectively.
High performing enterprises produced margins around twice that of the average for
each enterprise type. The highest margins were achieved for high performing lowland
(non-LFA) and store lamb production enterprises at £74/head and £72/head.
For sheep enterprises, variable costs were relatively similar between high and low
performing enterprises. Differences in gross margins were due mostly to the value
added to stocks and higher sales prices per head, which is expected to reflect
generally higher quality outputs between the performance groups.
Sheep and lamb enterprises experienced reduced average gross margins per head
since 2011-12, down, by around 40%. This reduction was caused by large increases
in feed costs of between 20% to 30%. Sale prices fell slightly compared to 2011-12
with very little value added through technical performance (around 1%). Lowland
sheep enterprise margins fell by around 50%. A 7% reduction in the sales price
combined with increased concentrate costs drove margins downwards. Similarly, the
average margin for extensive/hard enterprises was 46% lower than the previous year.
There was a 13% reduction in sale prices for this enterprise and this was combined
with much higher feed costs, thus reducing margins. The poor weather conditions
experienced during the 2012 production year led to an increase in the feeding of
concentrates and also added to the cost of producing forage. Physical performance
remained static as the variable cost per head increased.
Income accrued from sheep enterprises fell. Accounting for the size of enterprises,
crossbred ewe production (£45,000) and store lamb production (£17,000) achieved
the highest average overall gross margins. Long keep store lamb finishing enterprises
(£5,000) achieved the lowest average overall gross margins. However, crossbred
ewe production was down £19k, store lamb production £10k lower and long keep
store lamb finishing enterprises unchanged from 2011-12.
In contrast to gross margin results, the average output: input ratios (the return
achieved per £1 spent), was greatest for crossbred ewe production enterprises at 2.1.
Lowland (non-LFA) and extensive/hard-hill enterprises had the lowest ratios, at 1.3
and 1.4. These ratios were all substantially lower than those seen in 2011-12.
More detailed results, including sample size information, are available from the
agriculture statistics web page, Enterprise Performance Analysis.
Page | 10
Page | 11
Gross Margin per Head
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
-£40
-£20
£0
£20
£40
£60
Enterprise Type
Sheep
Enterprise Type
Low
Average
High
Low
Average
High
Gross Margin per head
Axis Title
£80
Sheep
-£20,000
-£10,000
£0
£10,000
£20,000
£30,000
£40,000
£50,000
£0
£10
£20
£30
£40
£50
£60
£70
Enterprise Type
Sheep
Enterprise Type
Sheep
Low
Average
High
2012-13
2011-12
Sheep Enterprises
Output:Input Ratio
Page | 12
Sheep: Extensive/hardhill
Sheep: Crossbred Ewe Production
Sheep:Finished/store lamb production
Sheep: Lowland (non LFA)
Sheep: Store Lamb finishing (short keep)
Sheep: Store Lamb finishing (long keep)
Dairy Cows
Dairy Followers
Dairy Mixed & Dairy Beef (combined)
Beef: Hill Herds
Beef: Upland suckler selling weaning
Beef: Upland suckler selling yearling stores
Beef: Lowland suckler/herds
Beef: Forward stores
Beef: Mixed
Beef: Finishing
(£ head)
983
449
365
160
383
314
306
115
122
157
(£ head)
26
64
55
53
c
16
Sheep EGM
Sheep EGM (£ head)
-12
14
c
51
-6
32
-24
26
c
c
-3
14
Cattle EGM (£ head)
480
850
c
477
140
371
-100
158
c
212
33
260
15
259
c
145
-77
142
-54
152
38
c
72
74
c
30
1,222
c
666
439
c
471
458
c
339
370
Sheep Overall EGM (£)
-8,652
11,003
c
45,432
-2,562
17,071
-4,070
7,640
c
c
-1,108
5,097
Cattle Overall EGM (£)
96,066
144,927
c
41,535
16,769
43,980
-3,255
7,920
c
13,125
2,502
24,756
848
17,747
c
8,624
-3,303
8,524
-5,030
17,372
30,719
c
30,213
13,396
c
10,051
240,430
c
77,781
29,079
c
55,779
31,413
c
24,010
35,297
0.7
c
0.9
0.8
c
0.9
1.5
c
1.2
0.8
c
1.1
1.0
c
0.8
0.9
Sheep
1.4
2.1
1.6
1.3
c
1.9
Cattle
1.8
1.7
1.6
1.3
1.5
1.5
1.5
1.7
1.5
1.4
2.5
c
2.5
1.8
c
3.1
2.1
c
2.2
2.1
c
2.2
2.0
c
2.2
2.1
Enterprise Gross Margin
Overall Enterprise Gross Margin
Output:Input Ratio
2012-13
2012-13
2012-13
Lower 25%
Average Upper 25% Lower 25%
Average Upper 25% Lower 25% Average
Upper 25%
(£
Crop EGM (£ hectare)
Crop Overall EGM (£)
Crop
891
472
832
1,175
23,280
28,891
28,158
1.8
2.5
3.0
695
c
699
c
c
19,396
c
c
2.4
c
686
408
686
962
18,217
33,799
57,517
2.0
2.8
3.5
735
480
702
937
26,516
53,034
57,421
2.1
2.7
3.2
1,150
328
623
914
10,389
18,667
27,266
1.6
2.1
2.6
754
c
839
c
c
16,255
c
c
3.4
c
612
501
747
1,091
10,301
20,598
17,428
2.6
3.5
4.3
3,454
c
4,917
c
c
156,501
c
c
3.7
c
Cattle EGM
Enterprise performance summary table: 2011-12 and 2012-13
Enterprise
2011-12
Average
Crop EGM
Winter Wheat
Winter Barley
Spring Barley
Mixed Barley
Winter Oil Seed Rape
Winter Oats
Spring Oats
All Potatoes
Summary Table
C data suppressed to prevent disclosure
Crop Tables
Winter Wheat
Winter Wheat
Enterprise Margin Performance Data
Per Hectare
Summary Data 2012/13
Number of Enterprises
Area (ha)
Yield (t/ha)
Production (t)
Price (£/t)
Gross Margin (£/ha)
High Performers
18
45.1
9.3
420
£167
£1,197
Value of Crop Output
Value of Straw Sold
Total Output Value
Seeds
Fertiliser
Crop Chemicals
Sundry Expenses
Variable Costs
GROSS MARGIN
Enterprise Income
Output/Input Ratio
£1,549
£170
£1,719
£82
£267
£160
£13
-£522
£1,197
£53,975
3.3
Page | 13
2011-12
All
73
46.6
7.8
365
£162
£891
£1,268
£133
£1,401
£81
£257
£147
£26
-£510
£891
£41,481
2.7
Low Performers High Performers
19
17
40.7
24.0
6.5
7.8
263
186
£156
£206
£556
£1,175
£1,013
£95
£1,108
£86
£281
£145
£40
-£552
£556
£22,657
2.0
£1,596
£161
£1,758
£95
£287
£175
£25
-£582
£1,175
£28,158
3.0
2012-13
All
68
34.7
6.5
227
£198
£832
Low Performers
17
49.3
5.0
247
£193
£472
£1,287
£116
£1,404
£104
£269
£165
£33
-£572
£832
£28,891
2.5
£951
£79
£1,030
£108
£257
£139
£53
-£557
£472
£23,280
1.8
Winter Barley
Winter Barley
Enterprise Margin Performance Data
Per Hectare
Summary Data 2012/13
Number of Enterprises
Area (ha)
Yield (t/ha)
Production (t)
Price (£/t)
Gross Margin (£/ha)
High Performers
5
14.9
7.8
116
£150
£988
Value of Crop Output
Value of Straw Sold
Total Output Value
Seeds
Fertiliser
Crop Chemicals
Sundry Expenses
Variable Costs
GROSS MARGIN
Enterprise Income
Output/Input Ratio
£1,165
£174
£1,339
£67
£178
£85
£22
-£351
£988
£14,736
3.8
C data suppressed to prevent disclosure
Page | 14
2011-12
All
19
22.1
7.0
154
£144
£695
£1,002
£123
£1,125
£82
£212
£106
£30
-£430
£695
£15,328
2.6
Low Performers High Performers
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
2012-13
All
17
27.8
6.4
177
£165
£699
Low Performers
c
c
c
c
c
c
£1,046
£152
£1,198
£87
£254
£125
£33
-£499
£699
£19,396
2.4
c
c
c
c
c
c
c
c
c
c
c
Spring Barley
Spring Barley
Enterprise Margin Performance Data
Per Hectare
Summary Data 2012/13
Number of Enterprises
Area (ha)
Yield (t/ha)
Production (t)
Price (£/t)
Gross Margin (£/ha)
High Performers
46
68.5
6.4
438
£181
£962
Value of Crop Output
Value of Straw Sold
Total Output Value
Seeds
Fertiliser
Crop Chemicals
Sundry Expenses
Variable Costs
GROSS MARGIN
Enterprise Income
Output/Input Ratio
£1,160
£158
£1,318
£79
£169
£78
£30
-£356
£962
£65,887
3.7
Page | 15
2011-12
All
184
45.7
5.5
249
£164
£686
£898
£133
£1,030
£82
£164
£69
£30
-£345
£686
£31,295
3.0
Low Performers High Performers
46
49
28.1
59.8
4.4
6.0
124
361
£152
£195
£411
£962
£664
£100
£765
£90
£167
£64
£33
-£354
£411
£11,551
2.2
£1,176
£169
£1,344
£90
£180
£79
£33
-£382
£962
£57,517
3.5
2012-13
All
Low Performers
195
48
49.3
44.7
5.0
4.1
245
181
£189
£182
£686
£408
£937
£133
£1,070
£90
£184
£76
£34
-£384
£686
£33,799
2.8
£726
£96
£822
£96
£202
£80
£35
-£415
£408
£18,217
2.0
Mixed Barley
Mixed Barley
Enterprise Margin Performance Data
Per Hectare
Summary Data 2012/13
Number of Enterprises
Area (ha)
Yield (t/ha)
Production (t)
Price (£/t)
Gross Margin (£/ha)
High Performers
10
105.7
7.1
750
£179
£1,022
Value of Crop Output
Value of Straw Sold
Total Output Value
Seeds
Fertiliser
Crop Chemicals
Sundry Expenses
Variable Costs
GROSS MARGIN
Enterprise Income
Output/Input Ratio
£1,260
£175
£1,435
£75
£197
£97
£45
£414
£1,022
£107,992
3.5
Page | 16
2011-12
All
42
79.0
6.0
471
£163
£735
£972
£151
£1,124
£74
£188
£92
£35
£389
£735
£58,042
2.9
Low Performers High Performers
10
8
55.4
61.3
4.6
6.5
254
399
£152
£184
£482
£937
£698
£151
£849
£64
£186
£79
£38
£367
£482
£26,698
2.3
£1,192
£178
£1,371
£84
£206
£116
£28
£434
£937
£57,421
3.2
2012-13
All
33
75.5
5.3
400
£188
£702
Low Performers
9
55.2
4.3
236
£186
£480
£992
£128
£1,120
£79
£201
£110
£27
£417
£702
£53,034
2.7
£792
£129
£920
£79
£210
£121
£29
£440
£480
£26,516
2.1
Winter Oil Seed Rape
Winter Oil Seed Rape
Per Hectare
Summary Data 2012/13
Number of Enterprises
Enterprise Margin Performance Data
Area (ha)
Yield (t/ha)
Production (t)
Price (£/t)
Gross Margin (£/ha)
High Performers
9
29.5
4.8
143
£396
£1,455
Value of Crop Output
Value of Straw Sold
Total Output Value
Seeds
Fertiliser
Crop Chemicals
Sundry Expenses
Variable Costs
GROSS MARGIN
Enterprise Income
Output/Input Ratio
£1,914
£2
£1,916
£51
£240
£150
£20
-461
£1,455
£42,942
4.2
Page | 17
2011-12
All
38
28.8
4.2
121
£386
£1,150
£1,617
£5
£1,622
£59
£241
£155
£17
-472
£1,150
£33,124
3.4
Low Performers High Performers
10
10
25.1
29.8
3.5
3.6
87
107
£383
£413
£847
£914
£1,322
£11
£1,333
£66
£243
£161
£15
-486
£847
£21,244
2.7
£1,483
£0
£1,483
£71
£301
£175
£22
-£569
£914
£27,266
2.6
2012-13
All
37
30.0
3.0
89
£397
£623
Low Performers
10
31.7
2.2
70
£390
£328
£1,186
£4
£1,190
£68
£287
£186
£27
-£567
£623
£18,667
2.1
£867
£3
£870
£57
£276
£182
£27
-£542
£328
£10,389
1.6
Spring Oats
Spring Oats
Enterprise Margin Performance Data
Per Hectare
Summary Data 2012/13
Number of Enterprises
Area (ha)
Yield (t/ha)
Production (t)
Price (£/t)
Gross Margin (£/ha)
High Performers
5
9.4
6.0
56
£175
£969
Value of Crop Output
Value of Straw Sold
Total Output Value
Seeds
Fertiliser
Crop Chemicals
Sundry Expenses
Variable Costs
GROSS MARGIN
Enterprise Income
Output/Input Ratio
£1,023
£209
£1,232
£56
£112
£78
£17
-£263
£969
£9,091
4.7
Page | 18
2011-12
All
21
17.3
4.7
82
£166
£612
£766
£143
£909
£102
£132
£38
£26
-£298
£612
£10,549
3.1
Low Performers High Performers
5
6
8.0
16.0
3.8
6.2
30
99
£153
£207
£261
£1,091
£573
£62
£634
£171
£130
£14
£58
-£373
£261
£2,086
1.7
£1,277
£145
£1,423
£93
£167
£47
£24
-£331
£1,091
£17,428
4.3
2012-13
All
27
27.6
4.8
132
£194
£747
Low Performers
7
20.6
4.1
85
£182
£501
£924
£126
£1,049
£98
£140
£43
£22
-£303
£747
£20,598
3.5
£743
£79
£822
£87
£165
£48
£21
-£321
£501
£10,301
2.6
Winter Oats & All Potatoes
Winter Oats
Enterprise Margin Performance Data
All Potatoes (combined) - Ware, Seed and Mixed
Per Hectare
2011-12
2012-13
Summary Data 2012/13
Winter Oats Potatoes
Winter Oats
Potatoes
Number of Enterprises
10
16
5
7
Area (ha)
£27
34.6
£19
31.8
Yield (t/ha)
£6
34.2
£6
36.2
Production (t)
£162
1185
£114
1154
Price (£/t)
£166
£164
£194
£179
Gross Margin (£/ha)
£754
£3,454
£839
£4,917
Value of Crop Output
Value of Straw Sold
Total Output Value
Seeds
Fertiliser
Crop Chemicals
Sundry Expenses
Variable Costs
GROSS MARGIN
Enterprise Income
Output/Input Ratio
Page | 19
£951
£101
£1,051
£66
£165
£52
£15
-£298
£754
£20,694
3.5
£4,981
£0
£4,981
£483
£405
£434
£206
-£1,527
£3,454
£119,531
3.3
£1,131
£54
£1,185
£88
£186
£57
£14
-£346
£839
£16,255
3.4
£6,742
£0
£6,742
£561
£463
£594
£208
-£1,826
£4,917
£156,501
3.7
Page | 20
Page | 21
homegrown concentrates
purchased concentrates
roughages
homegrown straw
keep taken
vet & med
Sundry Livestock expenses
Forage Costs
Variable Costs
GROSS MARGIN
Enterprise Income
Output/Input Ratio per head
Output Value
Milk sold
Milk used on farm
Livestock sales
Total sales
Closing valuation
Total purchases
Opening valuation
Blsa
Per Head & PPL
Summary Data 2012/13
Number of Enterprises
Herd Size
Yield per cow
Gross Margin per litre (ppl)
Gross Margin per head (£/hd)
Dairy Cows
0.31
7.33
0.73
0.02
0.06
0.74
1.45
1.4
-12.04
16.17
£251,732
2.3
£23
£613
£61
£2
£5
£61
£118
£111
-£995
£1,284
High Performers
10
196
7,827
16.17
£1,284
ppl £/head
28.59 £2,300
0.23
£16
3.34
£267
31.9 £2,583
13.37 £1,082
4.62
£380
11.5
£929
0.94
£78
28.21 £2,278
0.42
7.41
0.88
0.08
0.09
0.77
1.49
1.42
-12.57
13.55
£178,308
2.0
£30
£565
£67
£6
£5
£58
£109
£100
-£937
£983
0.47
7.65
0.99
0.12
0.25
0.84
1.58
1.75
-13.67
10.76
£141,153
1.7
£32
£521
£66
£8
£9
£55
£92
£93
-£877
£615
0.43
8.71
0.72
0.06
0.02
0.73
1.51
1.59
-13.79
15.35
£240,430
2.1
£33
£736
£61
£5
£2
£61
£125
£128
-£1,151
£1,222
2011-12
All
Low Performers
High Performers
39
9
11
181
230
197
7,180
6,069
7,915
13.55
10.76
15.35
£983
£615
£1,222
ppl £/head
ppl £/head
ppl £/head
27.78 £2,011
27.76 £1,649
29.39 £2,387
0.25
£16
0.29
£15
0.27
£21
3.64
£259
3.8
£209
3.92
£318
31.39 £2,286
31.54 £1,872
33.27 £2,725
14.73 £1,045
18.26 £1,044
14.56 £1,171
5.9
£405
8.29
£433
4.93
£409
13.28
£944
16.29
£940
13.24 £1,074
0.82
£60
0.8
£52
0.53
£41
26.12 £1,920
24.42 £1,491
29.14 £2,373
Enterprise Margin performance Data
0.45
8.76
1.01
0.06
0.06
0.77
1.66
1.7
-14.48
12.1
£144,927
1.8
£30
£638
£74
£5
£4
£58
£120
£118
-£1,046
£850
0.33
10.14
1.41
0.01
0.07
0.83
1.64
1.68
-16.11
8.87
£96,066
1.5
£16
£643
£93
£0
£3
£55
£106
£97
-£1,013
£480
2012-13
All
Low Performers
42
10
171
200
6,991
5,887
12.1
8.87
£850
£480
ppl £/head
ppl £/head
28.32 £1,998
27.76 £1,642
0.31
£20
0.42
£23
4.14
£293
4.26
£253
32.43 £2,311
31.98 £1,918
15.95 £1,085
19.97 £1,120
6.11
£429
7.95
£468
15.24 £1,043
18.65 £1,058
0.45
£29
0.36
£19
26.58 £1,895
24.98 £1,493
Dairy and Beef Tables
Dairy Cows
Page | 22
Dairy Mixed
Dairy Mixed & Dairy Beef (combined)
Per Head
Summary Data
Number of Enterprises
2011-12
Herd size
Total sales
Closing valuation
Total purchases
Opening valuation
Blsa
Total Output Value
Homegrown concentrates
Purchased concentrates
Roughages
Homegrown straw
Keep taken
Vet & med
Sundry Livestock expenses
Forage Costs
VARIABLE COSTS
GROSS MARGIN
Enterprise Income
Output/Input Ratio
Page | 23
Enterprise Margin Performance Data
High Performers
5
127
£1,152
£/head
£1,321
£151
£1,203
£0
£1,119
All
22
102
£1,009
£/head
£1,257
£203
£1,179
£0
£885
£63
£121
£10
£16
£14
£29
£47
£88
-£388
£731
£92,812
2.9
£46
£190
£39
£8
£20
£45
£68
£103
-£519
£365
£37,230
1.7
2012-13
Low Performers High Performers
6
6
82
117
£943
£1,272
£/head
£/head
£1,247
£1,524
£284
£192
£1,146
£1,367
£0
£0
£760
£1,238
£33
£247
£55
£6
£26
£48
£73
£137
-£625
£135
£11,072
1.2
£43
£239
£30
£16
£17
£51
£65
£112
-£572
£666
£77,781
2.2
All
26
119
£1,155
£/head
£1,208
£210
£1,187
£0
£966
Low Performers
6
120
£1,059
£/head
£1,109
£288
£1,146
£0
£735
£37
£255
£54
£8
£16
£42
£63
£119
-£595
£371
£43,980
1.6
£14
£283
£65
£0
£5
£47
£59
£122
-£595
£140
£16,769
1.2
Beef: Hill Herds
Beef: Hill Herds
Enterprise Margin Performance Data
Per Head
Summary Data
Number of Enterprises
2011-12
Herd size
Total sales
Closing valuation
Total purchases
Opening valuation
Blsa
Total Output Value
High Performers
c
c
c
£/head
c
c
c
c
c
All
17
53
£627
£/head
£1,436
£64
£1,365
£41
£593
c
c
c
c
c
c
c
c
c
c
c
c
£6
£151
£102
£5
£15
£42
£65
£47
-£433
£160
£8,466
1.4
Homegrown concentrates
Purchased concentrates
Roughages
Homegrown straw
Keep taken
Vet & med
Sundry Livestock expenses
Forage Costs
VARIABLE COSTS
GROSS MARGIN
Enterprise Income
Output/Input Ratio
C data suppressed to prevent disclosure
Page | 24
2012-13
Low Performers High Performers
5
5
36
66
£524
£887
£/head
£/head
£1,361
£1,675
£34
£114
£1,449
£1,557
£14
£43
£388
£847
£0
£220
£183
£0
£20
£41
£59
£40
-£564
-£175
-£6,364
0.7
£22
£132
£63
£16
£3
£32
£91
£50
-£409
£439
£29,079
2.1
All
18
50
£726
£/head
£1,401
£101
£1,366
£43
£617
Low Performers
5
33
£681
£/head
£1,361
£120
£1,426
£65
£431
£6
£185
£84
£5
£22
£40
£69
£48
-£459
£158
£7,920
1.3
£0
£222
£162
£0
£10
£28
£78
£32
-£531
-£100
-£3,255
0.8
Beef: Upland Suckler/Herds Selling Calves as Yearling
Beef: Upland suckler/herds selling calves as yearling stores (c.12 months)
Per Head
Summary Data
Number of Enterprises
2011-12
Herd size
Total sales
Closing valuation
Total purchases
Opening valuation
Blsa
Total Output Value
Homegrown concentrates
Purchased concentrates
Roughages
Homegrown straw
Keep taken
Vet & med
Sundry Livestock expenses
Forage Costs
VARIABLE COSTS
GROSS MARGIN
Enterprise Income
Output/Input Ratio
Page | 25
Enterprise Margin Performance Data
High Performers
36
113
£841
£/head
£1,593
£103
£1,433
£39
£859
All
141
94
£773
£/head
£1,445
£105
£1,355
£49
£711
£30
£83
£23
£13
£8
£37
£51
£92
-£337
£522
£58,737
2.5
£37
£110
£36
£15
£12
£40
£54
£94
-£397
£314
£29,596
1.8
2012-13
Low Performers High Performers
35
33
81
118
£720
£890
£/head
£/head
£1,245
£1,566
£99
£90
£1,254
£1,437
£55
£48
£558
£880
£45
£147
£46
£21
£12
£42
£52
£92
-£458
£100
£8,166
1.2
£38
£120
£37
£13
£12
£36
£46
£107
-£409
£471
£55,779
2.2
All
130
95
£825
£/head
£1,561
£106
£1,502
£39
£740
Low Performers
33
76
£775
£/head
£1,475
£119
£1,497
£27
£607
£48
£145
£48
£20
£13
£42
£54
£110
-£479
£260
£24,756
1.5
£65
£188
£67
£29
£9
£46
£52
£117
-£574
£33
£2,502
1.1
Beef: Lowland Suckler Herds
Beef: Lowland suckler/herds
Enterprise Margin Performance Data
Per Head
Summary Data
Number of Enterprises
2011-12
Herd size
Total sales
Closing valuation
Total purchases
Opening valuation
Blsa
Total Output Value
Homegrown concentrates
Purchased concentrates
Roughages
Homegrown straw
Keep taken
Vet & med
Sundry Livestock expenses
Forage Costs
VARIABLE COSTS
GROSS MARGIN
Enterprise Income
Output/Input Ratio
Page | 26
High Performers
11
63
£784
£/head
£1,520
£35
£1,348
£44
£878
All
42
80
£815
£/head
£1,532
£86
£1,444
£48
£769
£28
£70
£48
£37
£16
£41
£30
£89
-£360
£518
£32,497
2.4
£57
£83
£31
£62
£12
£49
£38
£131
-£462
£306
£24,569
1.7
2012-13
Low Performers High Performers
11
9
88
69
£799
£1,033
£/head
£/head
£1,348
£1,962
£135
£139
£1,386
£1,860
£31
£72
£595
£924
£97
£65
£23
£84
£5
£43
£38
£158
-£513
£82
£7,226
1.2
£83
£87
£30
£43
£8
£45
£31
£138
-£466
£458
£31,413
2.0
All
38
69
£890
£/head
£1,666
£136
£1,637
£35
£747
Low Performers
9
57
£786
£/head
£1,538
£265
£1,499
£16
£544
£77
£97
£37
£56
£12
£47
£36
£128
-£489
£259
£17,747
1.5
£119
£85
£36
£58
£14
£54
£46
£118
-£529
£15
£848
1.0
Beef: Mixed
Beef: Mixed
Enterprise Margin Performance Data
Per Head
Summary Data
Number of Enterprises
2011-12
Herd size
Total sales
Closing valuation
Total purchases
Opening valuation
Blsa
Total Output Value
Homegrown concentrates
Purchased concentrates
Roughages
Homegrown straw
Keep taken
Vet & med
Sundry Livestock expenses
Forage Costs
VARIABLE COSTS
GROSS MARGIN
Enterprise Income
Output/Input Ratio
Page | 27
High Performers
8
88
£1,224
£/head
£590
£564
£557
£0
£693
All
32
82
£987
£/head
£472
£628
£441
£0
£390
£31
£159
£15
£24
£2
£13
£36
£59
-£338
£355
£31,063
2.0
£42
£104
£13
£14
£5
£13
£30
£48
-£268
£122
£9,966
1.5
2012-13
Low Performers High Performers
8
5
85
71
£806
£1,181
£/head
£/head
£357
£790
£690
£647
£278
£697
£0
£0
£195
£627
£39
£146
£17
£6
£7
£12
£35
£22
-£283
-£88
-£7,531
0.7
£80
£83
£20
£11
£4
£9
£26
£53
-£288
£339
£24,010
2.2
All
23
60
£1,073
£/head
£522
£646
£512
£0
£439
Low Performers
6
43
£1,085
£/head
£525
£644
£631
£0
£335
£84
£90
£14
£12
£2
£13
£31
£51
-£297
£142
£8,524
1.5
£144
£158
£11
£18
£2
£10
£25
£43
-£412
-£77
-£3,303
0.8
Beef: Finishing
Beef: Finishing
Enterprise Margin Performance Data
Per Head
Summary Data
Number of Enterprises
2011-12
Herd size
Total sales
Closing valuation
Total purchases
Opening valuation
Blsa
Total Output Value
Homegrown concentrates
Purchased concentrates
Roughages
Homegrown straw
Keep taken
Vet & med
Sundry Livestock expenses
Forage Costs
VARIABLE COSTS
GROSS MARGIN
Enterprise Income
Output/Input Ratio
Page | 28
High Performers
26
88
£1,549
£/head
£1,170
£902
£1,037
£0
£785
All
106
125
£1,185
£/head
£807
£746
£711
£0
£537
£61
£190
£42
£32
£6
£15
£27
£60
-£434
£351
£30,756
1.8
£84
£131
£26
£31
£7
£14
£29
£57
-£380
£157
£19,627
1.4
2012-13
Low Performers High Performers
27
27
128
95
£1,014
£1,395
£/head
£/head
£650
£878
£713
£733
£573
£844
£0
£0
£379
£698
£103
£145
£23
£34
£4
£12
£36
£47
-£404
-£24
-£3,116
0.9
£101
£81
£8
£29
£8
£19
£25
£57
-£328
£370
£35,297
2.1
All
105
115
£1,284
£/head
£811
£760
£783
£0
£552
Low Performers
26
93
£1,280
£/head
£796
£840
£764
£0
£472
£117
£134
£17
£28
£8
£15
£26
£54
-£400
£152
£17,372
1.4
£146
£202
£35
£32
£2
£17
£33
£60
-£526
-£54
-£5,030
0.9
Sheep Tables
Sheep: Extensive/Hardhill
Sheep: Extensive/Hardhill
Enterprise Margin Performance Data
Per Head
Summary Data
Number of Enterprises
2011-12
Flock size
Total sales
Closing valuation
Total purchases
Opening valuation
Blsa
Total Output Value
Homegrown concentrates
Purchased concentrates
Roughages
Homegrown straw
Keep taken
Vet & med
Sundry Livestock expenses
Forage Costs
VARIABLE COSTS
GROSS MARGIN
Enterprise Income
Output/Input Ratio
Page | 29
High Performers
11
794
£95
£/head
£114
£9
£102
£9
£89
All
43
787
£57
£/head
£86
£6
£75
£8
£55
£2
£7
£1
£0
£3
£8
£7
£4
-£30
£58
£46,250
2.9
£1
£9
£1
£0
£3
£5
£6
£5
-£29
£26
£20,205
1.9
2012-13
Low Performers High Performers
11
10
678
798
£27
£68
£/head
£/head
£73
£92
£3
£5
£62
£89
£8
£0
£28
£65
£1
£7
£1
£0
£4
£4
£5
£5
-£28
£0
£14
1.0
£2
£6
£0
£0
£1
£6
£7
£4
-£26
£38
£30,719
2.5
All
42
798
£50
£/head
£86
£6
£85
£0
£45
Low Performers
10
748
£37
£/head
£79
£8
£78
£8
£30
£1
£10
£1
£0
£3
£5
£6
£5
-£31
£14
£11,003
1.4
£3
£14
£3
£1
£3
£5
£5
£7
-£41
-£12
-£8,652
0.7
Sheep: Finished/Store Lamb Production
Sheep: Finished/store lamb production
Per Head
Summary Data
Number of Enterprises
2011-12
Flock size
Total sales
Closing valuation
Total purchases
Opening valuation
Blsa
Total Output Value
Homegrown concentrates
Purchased concentrates
Roughages
Homegrown straw
Keep taken
Vet & med
Sundry Livestock expenses
Forage Costs
VARIABLE COSTS
GROSS MARGIN
Enterprise Income
Output/Input Ratio
Page | 30
Enterprise Margin Performance Data
High Performers
34
333
£144
£/head
£116
£27
£100
£4
£130
All
138
491
£112
£/head
£102
£19
£88
£6
£101
£2
£11
£2
£1
£3
£7
£10
£8
-£45
£85
£28,310
2.9
£2
£13
£2
£1
£4
£6
£9
£10
-£46
£55
£26,921
2.2
2012-13
Low Performers High Performers
35
31
458
418
£83
£139
£/head
£/head
£95
£115
£16
£17
£83
£115
£4
£1
£75
£121
£2
£17
£2
£0
£7
£7
£8
£10
-£54
£21
£9,606
1.4
£2
£15
£1
£1
£2
£7
£10
£11
-£49
£72
£30,213
2.5
All
122
526
£104
£/head
£106
£17
£105
£1
£88
Low Performers
31
422
£87
£/head
£110
£20
£109
£0
£68
£2
£19
£2
£1
£3
£7
£9
£11
-£55
£32
£17,071
1.6
£3
£29
£6
£1
£4
£8
£10
£13
-£74
-£6
-£2,562
0.9
Sheep: Lowland (non LFA)
Sheep: Lowland (non LFA)
Enterprise Margin Performance Data
Per Head
Summary Data
Flock size
2011-12
Flock size
Total sales
Closing valuation
Total purchases
Opening valuation
Blsa
Total Output Value
Homegrown concentrates
Purchased concentrates
Roughages
Homegrown straw
Keep taken
Vet & med
Sundry Livestock expenses
Forage Costs
VARIABLE COSTS
GROSS MARGIN
Enterprise Income
Output/Input Ratio
Page | 31
High Performers
10
177
£169
£/head
£125
£28
£119
£7
£140
All
38
302
£144
£/head
£132
£31
£123
£5
£117
£1
£14
£1
£1
£1
£7
£16
£11
-£51
£88
£15,691
2.7
£3
£21
£1
£3
£2
£8
£12
£14
-£64
£53
£16,112
1.8
2012-13
Low Performers High Performers
10
10
177
181
£128
£175
£/head
£/head
£101
£142
£39
£26
£108
£129
£2
-£1
£80
£163
£4
£17
£0
£3
£4
£7
£10
£15
-£60
£20
£3,607
1.3
£3
£44
£4
£2
£0
£14
£9
£14
-£89
£74
£13,396
1.8
All
41
294
£135
£/head
£144
£29
£141
-£2
£111
Low Performers
11
172
£126
£/head
£213
£57
£185
£1
£97
£6
£28
£2
£4
£4
£10
£12
£19
-£85
£26
£7,640
1.3
£16
£34
£2
£7
£6
£9
£16
£32
-£120
-£24
-£4,070
0.8
Sheep: Store Lamb Finishing (long keep)
Sheep: Store lamb finishing (long keep)
Per Head
Summary Data
Number of Enterprises
2011-12
Flock size
Total sales
Closing valuation
Total purchases
Opening valuation
Blsa
Total Output Value
Homegrown concentrates
Purchased concentrates
Roughages
Homegrown straw
Keep taken
Vet & med
Sundry Livestock expenses
Forage Costs
VARIABLE COSTS
GROSS MARGIN
Enterprise Income
Output/Input Ratio
Page | 32
Enterprise Margin Performance Data
High Performers
8
363
£89
£/head
£30
£50
£28
£0
£42
All
34
322
£75
£/head
£23
£55
£15
£0
£28
£0
£4
£0
£0
£1
£1
£4
£1
-£12
£30
£10,915
3.6
£1
£4
£1
£0
£1
£1
£3
£2
-£12
£16
£5,102
2.3
2012-13
Low Performers High Performers
9
7
225
330
£58
£94
£/head
£/head
£31
£54
£57
£49
£15
£53
£0
£0
£17
£45
£1
£4
£2
£1
£0
£1
£3
£3
-£15
£2
£410
1.1
£0
£7
£0
£0
£0
£1
£4
£2
-£15
£30
£10,051
3.1
All
27
376
£81
£/head
£26
£53
£26
£0
£29
Low Performers
7
400
£72
£/head
£2
£55
£2
£0
£18
£1
£5
£0
£1
£1
£1
£3
£3
-£15
£14
£5,097
1.9
£1
£7
£0
£2
£2
£1
£3
£4
-£20
-£3
-£1,108
0.9
Page | 33
£24
£275
£61
£3
£25
£51
£108
£98
-£645
£449
£46,951
1.7
Closing valuation
Total purchases
Opening valuation
Blsa
Total Output Value
Homegrown concentrates
Purchased concentrates
Roughages
Homegrown straw
Keep taken
Vet & med
Sundry Livestock expenses
Forage Costs
VARIABLE COSTS
GROSS MARGIN
Enterprise Income
Output/Input Ratio
£8
£108
£45
£1
£4
£46
£58
£71
-£342
£383
£25,010
2.1
8
65
£676
£/head
£1,353
£120
£1,130
£53
£725
Beef:
Dairy
Suckler
Followers Calves (6m)
17
104
£1,161
£/head
£1,343
£167
£1,242
£0
£1,095
Summary Data
Number of Enterprises
Flock size
Total sales
Per Head
Other Livestock
£55
£84
£10
£15
£18
£7
£23
£35
-£248
£115
£8,527
1.5
17
74
£989
£/head
£388
£666
£349
£0
£363
£4
£9
£0
£1
£4
£6
£9
£10
-£43
£64
£64,167
2.5
5
1,000
£114
£/head
£112
£14
£99
£6
£108
Beef:
Sheep:
Forward Crossbred
Stores
Ewes
2011-12
£0
£3
£0
£0
£0
£0
£3
£1
-£8
£12
£1,736
2.6
5
141
£75
£/head
£2
£57
£0
£0
£20
£22
£305
£51
£2
£23
£49
£92
£108
-£652
£477
£41,535
1.7
13
87
£1,152
£/head
£1,564
£235
£1,351
£0
£1,129
£27
£141
£42
£4
£2
£53
£63
£106
-£439
£212
£13,125
1.5
8
62
£874
£/head
£1,396
£95
£1,471
£54
£651
Beef:
Store Lamb
Dairy
Suckler
(short keep) Followers Calves (6m)
Enterprise Margin Performance Data
£33
£58
£14
£13
£5
£14
£20
£41
-£197
£145
£8,624
1.7
12
60
£970
£/head
£476
£672
£432
£0
£342
£5
£12
£1
£0
£3
£5
£9
£9
-£45
£51
£45,432
2.1
6
894
£113
£/head
£98
£12
£101
£1
£96
Beef:
Sheep:
Forward Crossbred
Stores
Ewes
2012-13
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
£/head
c
c
c
c
c
Store Lamb
(short keep)
Livestock Enterprises with less than 5 holdings in the Quartile Groups
C data suppressed to prevent disclosure
Dairy Followers: Average Output, Input and Margin
Values
£1,500
£ per Head
£1,000
£500
£0
2011/12
-£500
2012/13
-£1,000
Total Output
Value
Variable Costs
Performance Data
Page | 34
Gross Margin
Description of Performance Measures
The following hypothetical example aims to demonstrate the differences between the
different measures of performance. Taking two enterprises of the same size, with 50
head of cattle. Enterprise A with a relatively high gross margin, of £100/head, may be
considered to be performing better than enterprise B with a lower gross margin of
£80/head. However, enterprise B may achieve a greater output:input ratio (of £3.25
for every £1 of input, compared to £2.67 for enterprise A), because input costs are
lower than those of enterprise A and enterprise B achieves a greater mark up in prices
achieved for outputs.
This higher output:input ratio can give enterprise B an advantage over enterprise A,
for example in a situation where the desire is to grow the enterprise. Because
enterprise B makes relatively more money for the same size of enterprise and
achieves lower input costs and higher output prices, enterprise B achieves a greater
return per unit cost. Depending on the impact of fixed costs on the enterprise this
could place enterprise B in a stronger position to grow the enterprise through
reinvesting profits to increase stock, despite achieving a relatively lower margin than
enterprise A.
Further to this, a third enterprise (enterprise C) may be considered to be more
profitable than enterprise A or B, despite achieving a lower gross margin and a lower
output:input ratio. Enterprise C may generate a higher income than either enterprise A
or B simply because enterprise C is larger (100 head of cattle compared to 50). After
accounting for fixed costs, if enterprise C is efficiently managed, this may result in
greater profitability.
Example Enterprise Analysis
Enterprise A
(High GM)
Stock size (head of cattle)
Inputs (£/head)
Outputs (£/head)
Gross Margin (£/head)
Output:Input ratio (£)
Income (£)
50
60
160
100
2.67
5,000
Enterprise B
(High Output:Input ratio)
50
40
130
90
3.25
4,500
Enterprise C
(High Income)
100
60
120
60
2.00
6,000
The enterprise gross margin (per unit of output) is a sign of whether the enterprise is
able to secure a good price for the output it produces relative to the cost of producing
the output. The enterprise income accounts for the overall size of the enterprise
operation, two enterprises might have the same gross margin but if they are operating
on different scales the larger will have a greater income value. Enterprise income
therefore does not measure performance on an equal basis across different
enterprises, but has been included in the report to provide additional contextual
information on enterprise profitability. The enterprise output:input ratio measures the
value of outputs relative to the value of inputs and tells us how well an enterprise
generates profit for every unit of input, this contributes to high profitability when the
value of the output is high. An enterprise might have a high ratio but if the value of the
outputs is low then the enterprise won’t generate a high profit.
Page | 35
Market Context
The latest enterprise data included in the analysis in this report is taken from farms
sampled in the 2012-13 Farm Accounts Survey (FAS). The period covered by the
2012-13 survey runs from December 2011 to May 2013, including data for farms with
year ends in November 2012, January 2013, March 2013 and May 2013. It is
important to put the results in the context of the market situation over this period. The
charts below show DEFRA UK price indices with January 2010 set as the base. Price
indices have been included here to provide some general context, more detailed
Scottish price data can be accessed from Quality Meat Scotland (QMS) for livestock
data, http://www.qmscotland.co.uk, and from the Home Grown Cereals Authority
(HGCA) for crops, http://www.hgca.com.
The impact of market prices on the profitability of farm enterprises depends largely on
the timing of purchases and sales and also on the use of contracts which can tie
farmers into different prices compared to spot prices available to others.
Chart A below shows the price indices of fertiliser, seed, feedstuffs and veterinary
services costs since early 2010. Fertiliser costs showed a decline over the period of
the survey remaining about 20% higher than January 2010 (base) between
September 2012 and March 2013, while cost of feed rose to about 50% higher than
January 2010 (base). Veterinary services costs remained fairly constant over the
period of the survey, at about 10% more than in January 2010 (base). Seed costs
were the most volatile. During the timeframe of the survey they were lowest between
May 2012 and July 2012, then rising to about 10% higher than January 2010 (base)
between January 2013 and March 2013.
Chart A
Chart B below shows the price indices of cereals, oilseed rape and potato outputs
since early 2010. Crop prices on the whole saw increases over the period of the
survey. Cereal prices saw a steady rise to about 80% higher than January 2010
prices. There was a considerable rise in potato prices peaking at about 110% higher
than those in January 2010.
Page | 36
Chart B
Chart C below shows the price indices of cattle, sheep and milk outputs since early
2010. Milk prices were in decline between January 2012 and July 2012 but recovered
in September 2012 remaining steady at around 20% higher than January 2010 prices
towards the end of 2012. From December 2010, cattle prices have been on a fairly
steady increase over the period of the survey. In 2012 there was a steep decline in
sheep prices which, rose again at the start of 2013 until May 2013 - the latest period
covered in the Farm Accounts Survey.
Chart C
Page | 37
Definition of Terms
Livestock Enterprise Definitions
Enterprise
Classification
Dairy Cows
cows utilised of milk production
Dairy Followers
Dairy Mixed
Beef: Upland Suckler Herds Selling Claves
as Yearling Stores
Beef: Upland Suckler Herds Selling Calves
at Weaning
enterprises where more than 80% of the total average livestock
number are breeding heifers.
enterprises where less than 80% of the total average livestock number
are breeding heifers.
Upland herds selling calves between 10 and 14 months old.
Upland herds selling calves around 6 months old.
Beef: Lowland Suckler Herds
lowland, non-LFA (less favoures areas), herds.
Beef: Finishing
enterprises where more than 75% of young cattle are sold finished.
Beef: Mixed
enterprises where less than 75% of young cattle are sold as stores and
less than 75% are sold finished.
Beef: Forward Stores
enterprises where more than 75% of young cattle are sold as stores.
Beef: Hill Suckler Herds
rough grazing accounts for more than 75% of the enterprise.
Sheep: Crossbred Ewe Production
LFA enterprises where more than 50% of ewe lambs are sold for
breeding.
Sheep: Lowland (non-LFA)
finished and store lambs raised on non-LFA (less favoures areas) land.
Sheep: Finished/Store Lamb Production
finished and store lambs raised on LFA (less favoures areas) land.
Sheep: Store Lamb Finishing (Long Keep)
lambs sold finished, where more than 80% are sold after Christmas.
Sheep: Extensive/Hardhill
enterprises raising Black Face or Cheviot pure breds, where less thatn
110% of lambs are disposed.
Sheep: Store Lamb Finishing (Short Keep)
lambs sold finished, where more than 80% are sold before Christmas.
Page | 38
Crop Definitions
Area (ha)
Yield (t/ha)
Production (t)
The area of the crop enterprise in hectares
Total production divided by crop area
Area (hectares) times average yield (tonnes per hectare)
Price (£/t)
Gross Margin (£/ha)
Sales of crops plus the value of closing stocks and value transferred out to other
enterprises.
The sum of gross output less replacement and variable costs
Value of Crop Output
Value of Straw Sold
Total Output Value
The total value of crops produced by the enterprise. Any difference between the
opening valuation of any stocks of previous crops and their ultimate disposal
value (sales, used on farm and any end-year stocks) is included in total farm
output
Monetary value of straw sold
Value of crop and straw output
Fertiliser
Expenditure on purchased seeds adjusted for changes in stocks. Home-grown
seed is included and charged at estimated market price. Any seeds from current
crops and sown, are included in the closing valuation of the crop and hence in
enterprise output.
This includes lime, fertilisers and other manures, and is adjusted for changes in
stock. Fertilisers sown for next year's crops are treated as if they were still in store
and are included in the closing valuation
Crop Chemicals
This includes costs of pre-emergent sprays, fungicides, herbicides, dusts and
insecticides and other crop sprays.
Sundry Expenses
These comprise all crop inputs not separately specified, e.g. marketing charges,
packing materials, British Potato Council levy, baling twine and wire (though not
fencing wire)
Variable Costs
GROSS MARGIN
Enterprise Income
Output/Input Ratio
These are taken to be costs of feed, veterinary fees and medicines, other
livestock costs, seeds, fertilisers, crop protection and other crop costs.
The sum of gross output less replacement and variable costs
Area of enterprise in hectares multiplied by the gross margin value
Ratio of production output to what is required to produce it (inputs)
Seeds
Page | 39
Dairy Definitions
Number of Enterprises
Herd Size
Yield per cow
Gross Margin per litre (ppl)
Gross Margin per head (£/hd)
Count of separate enterprises in the sample
The average number of dairy cows in the milking herd over the year
Annual herd production in litres divided by the average number of cows in the herd
Enterprise Output less the Variable Costs of the enterprise in pence per litre
Enterprise Output less the Variable Costs of the enterprise in £'s per head
Milk sold
Milk used on farm
Livestock sales
Total sales
Closing valuation
Total purchases
Opening valuation
Blsa
Value of milk sold in ppl or £/head
The value of milk and milk products fed on the farm (excluding direct suckling)
Value of livestock sold (per head)
Value of milk sold in ppl or £/head plus, milk used on farm and livestock sales
Value of livestock at the end of the accounting period
Average value of livestock purchases on a £ per head basis
Value of livestock at the start of the accounting period
The change in value of breeding livestock between the opening and closing value
that is due to general market price changes rather than changes in the quality or age
of the herd.
Output Value
The total sales of livestock and livestock products including part of the valuation
change
home grown concentrates
purchased concentrates
roughages
This includes ex-farm value of all home produced cereals, beans, milk (excluding
direct suckling), etc. fed on the farm both from the current and previous years' crops.
This represents expenditure on feeds and feed additives
Feed high in fibre (greater than 18% crude fibre); tends to be bulky, coarse and low
in energy, hay, straw or other coarse feed fed to cattle
home grown straw
keep taken
vet & med
Sundry Livestock expenses
Value of straw consumed
Charges for grazing (seasonal)
This consists of veterinary fees and the cost of all medicines.
This comprises straw bought specifically for costs bedding materials, breeding costs
(including AI and stud fees), miscellaneous dairy expenses, disinfectants, marketing
and storage costs of animal products, Milk Development Council levy and other
livestock costs not separately identified.
Forage Costs
Variable Costs
Value of fodder crops such as hay, silage, root crops and maize
These are taken to be costs of feed, veterinary fees and medicines, other livestock
costs, seeds, fertilisers, crop protection and other crop costs.
GROSS MARGIN
Enterprise Income
Output/Input Ratio per head
Enterprise Output less the Variable Costs of the enterprise
Gross margin times the herd size
Output value divided by the variable cost (ppl basis)
Page | 40
Livestock Definitions (excluding Dairy)
Number of Enterprises
Herd size
Total sales
Count of separate enterprises in the sample
The average herd size
Value of livestock sold (per head)
Closing valuation
Total purchases
Opening valuation
Blsa
Value of livestock at the end of the accounting period
Average value of livestock purchases on a £ per head basis
Value of livestock at the start of the accounting period
The change in value of breeding livestock between the opening and closing
value that is due to general market price changes rather than changes in the
quality or age of the herd.
Total Output Value
Homegrown concentrates
Purchased concentrates
Roughages
Homegrown straw
Keep taken
Vet & med
Sundry Livestock expenses
Forage Costs
VARIABLE COSTS
GROSS MARGIN
Enterprise Income
Output/Input Ratio
Page | 41
The total sales of livestock and livestock products including part of the
valuation change
This includes ex-farm value of all home produced cereals, beans, milk
(excluding direct suckling), etc. fed on the farm both from the current and
previous years' crops.
This represents expenditure on feeds and feed additives
Feed high in fibre (greater than 18% crude fibre); tends to be bulky, coarse and
low in energy, hay, straw or other coarse feed fed to cattle
Value of straw consumed
Charges for grazing (seasonal)
This consists of veterinary fees and the cost of all medicines.
This comprises straw bought specifically for costs bedding materials, breeding
costs (including AI and stud fees), miscellaneous dairy expenses, disinfectants,
marketing and storage costs of animal products, Milk Development Council levy
and other livestock costs not separately identified.
Value of fodder crops such as hay, silage, root crops and maize
These are taken to be costs of feed, veterinary fees and medicines, other
livestock costs, seeds, fertilisers, crop protection and other crop costs.
Enterprise Output less the Variable Costs of the enterprise
Gross margin times the herd size
Output value divided by the variable cost (per head basis)
Related Information
Results from all Scottish Government agricultural surveys can be accessed here:
http://www.scotland.gov.uk/Topics/Statistics/Browse/AgricultureFisheries/Publications
Quality Meat Scotland (QMS) publish their own enterprises margin analysis of
Scottish livestock enterprises. These results contain more technical detail of
livestock enterprises and include net as well as gross margins, though enterprise
results are based on typically smaller sample sizes. QMS enterprise analysis can be
accessed here:
www.qmscotland.co.uk
The Department for Environment, Food and Rural Affairs (DEFRA) in England and
the Department of Agriculture and Rural Development (DARD in Northern Ireland
routinely publish results of enterprise margin analysis, these can be accessed from
the websites below:
England (DEFRA)
http://www.fbspartnership.co.uk/index.php?id=1530
Northern Ireland (DARD)
www.dardni.gov.uk/ni-farm-performance-indicators-2010-11.pdf
Contacts
We welcome comments on the content and format of this report, which can be sent
to:
Email: thomas.sharp@scotland,gsi.gov.uk
Tel: 0300 244 9700
Page | 42