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Author: Ashbridge, Ian ian.ashbridgc@rbi.co.uk

Section: BENCHMARKING
Information sharing proves beneficial


Benchmarking has helped an East Anglian farm cut establishment costs without hitting yield

Comparing costs on different farms is one thing. Turning those data into crop management techniques is another. But farm management company Sentry believes benchmarking can be the key to more efficient operations and better margins.

A prime example is establishment costs on its arable units. Measuring machinery passes across the firm's 13,000ha showed that holdings performing more complicated crop establishment operations gained only marginal increases in yield, notes technical director Trevor Atkinson.

"Figures collected for the 2005 crop suggest we can reduce our machinery work to get the crop in the ground without affecting yields."

The scatter graph (below) shows the number of machinery passes taken to establish wheat on Sentry farms and resulting yield. Although situations ranged from minimumtillage to more difficult land, the black yield line shows the number of passes has little effect, averaging a reasonably consistent 8.2t/ha.

"Actually, there is a very slight incline to that black line," says Mr Atkinson. "But it only equates to a gain of about £1.19 of wheat.

"Obviously, there are some areas of harder land which need more work. And this isn't about cutting corners; it's about choosing the right machine to do the job more efficiently and effectively."

So, why continue to make two passes with a power-harrow in front of a combination drill, when a cultivator-drill will take the soil from plough to seed-bed in one pass?

That's just what Sentry has done on one of its arable farms at Chatteris, Cambs. But the raw figures collected in the benchmarking process only pointed to the symptoms, not the root cause.

"Benchmarking is not about producing a figure everyone must perform to. It's about identifying the area to focus on to make improvements," he says.

The first accounts-driven stage showed only that machinery costs at Burrows Hill were higher than some other units, pushing the farm out of the top-25% bracket.

"The second stage in the benchmarking process looked harder at the machinery fleet performance on that farm.

"The third stage was collecting information at farm level, including data extrapolated from Farmade. This showed us what the machinery was being used for and allowed us to compare passes per crop."

Historically, says Mr Atkinson, costs of individual operations got lost within a farm's fixed costs. "Using benchmarking means a shift from thinking in terms of yields and costs per hectare, to thinking in terms of pounds per tonne of wheat produced."

Noting that Burrows Hill was working its kit harder to get wheat sown, Sentry management could then ask Trevor Scott, the farm's operations manager, to investigate crop establishment on other farms in the group.

The outcome was to re-equip with a Horsth Pronto cultivator-drill. While some of the heaviest clay on the farm stiff requires extra work, the remaining peat and gravel soils can be drilled straight after ploughing. "I wouldn't have believed it," says Mr Scott.

This has cut machinery passes to three; ploughing, drilling with the culti-drill, and a last press with conventional Cambridge rolls. Wheat has taken well and is well forward, says Mr Scott.

Replacing the drill meant a reinvestment of about £30,000 â€" a net cost of £6/ha. But this will be offset by drilling twice the hectares in a day, saving £3.50/ha and using at least 25% less fuel saving £2.50-£3/ha.

The farm has also dropped one tractor from its fleet, saving £13/ha in depreciation, repairs and insurance. From this summer, labour costs will also be streamlined by switching from two 20m sprayers to one 24m model.

Hours freed by the establishment changes have also allowed Mr Scott to focus on other income streams, including simulated game-shooting days for corporate clients, and contracting work to further dilute the farm's fixed costs.

"Benchmarking isn't about coming up with a figure everyone has to perform to," says Mr Atkmson. "It's more about providing a catalyst for change."

Benchmarking success

  • Burrows Hill arable unit, Chatteris, Cambs
  • Five-pass establishment system reviewed
  • New Horsch Pronto cultivator drill = three-pass plough, culti-drill, press system
  • Capital outlay £30,000 â€" £6/ha
  • Faster work saves £3-50/ha + 25% less fuel
  • One fewer tractors saves £13/ha
  • Saved hours invested in other revenue streams

GRAPH: WHEAT â€" ESTABLISHEMNT PASSES: YIELD

PHOTO (COLOR): Fresh approach to establishing wheat has cut costs, saved fuel and freed man hours for other ventures, says Cambs grower Trevor Scott.

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REPORTS BY Ian Ashbridge



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