Gross Margin Tables
The following tables give some indications of gross margins. We have used our best estimates of subsidy levels, yields and prices – please feel free to substitute your own figures. Also consider with Hemp:
- Excellent opportunity for controlling grass weeds (especially useful in resistant situations.)
- Fewer Field Operations, in particular spraying.
- No Combining Requirements – Unless doing dual Hemp in which case higher margins
- Prices Based on Contractors – Opportunities to row up & bale in house can considerably increase margins.
- Opportunities in Organic Situations.
- Hemp may qualify for other environmental schemes, please check with your advisor.
- A number of growers have commented on improved yields after hemp than after other break crops.
Gross Margin Per Hectare of Hemp & Alternative Crops
The table below shows the gross margin that can be expected for different yields of hemp compared with alternative break crops. Like all crops the yield can vary depending on the weather and growing conditions. In good years yields of 9 tonnes per hectare have been achieved but an average of 7.5 tonnes per hectare is more likely.
| W Rape |
W Beans |
S Rape |
S Beans |
Peas | S Barley |
Lin-seed | Hemp | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Aid | 0 | 37 | 0 | 37 | 37 | 0 | 0 | 0 | 0 | 0 |
| Yield | 3.5 | 4.0 | 2.0 | 3.5 | 4.0 | 6.0 | 2.0 | 6.0 | 7.5 | 9.0 |
| Crop Value | 265 | 120 | 265 | 130 | 200 | 130 | 300 | 142.5 | 142.5 | 142.5 |
| Return | 928 | 517 | 530 | 492 | 837 | 780 | 600 | 855 | 1069 | 1283 |
| Seed | 45 | 60 | 64 | 130 | 125 | 60 | 60 | 122 | 122 | 122 |
| Fertiliser | 336 | 75 | 240 | 75 | 100 | 270 | 138 | 235 | 235 | 235 |
| Chemicals | 195 | 105 | 78 | 88 | 120 | 98 | 72 | 13 | 13 | 13 |
| Cutting | 25 | 20 | 20 | 20 | 25 | 15 | 25 | 60 | 60 | 60 |
| Raking | 10 | 10 | 10 | |||||||
| Baling | 60 | 60 | 60 | 60 | 60 | 60 | 60 | 66 | 82 | 99 |
| Drying | 7 | 8 | 4 | 7 | 8 | 12 | 4 | 0 | 0 | 0 |
| Total | 668 | 328 | 466 | 380 | 438 | 515 | 359 | 506 | 522 | 539 |
| Gross Margin | 260 | 189 | 64 | 112 | 399 | 265 | 241 | 349 | 547 | 744 |
NB. Figures printed on this page are a guide for comparison only and we recommend you insert your own figures especially for fertiliser
Haulage to Plant Assuming 7.5t/ha
- 10 mile radius £4/t £30/ha GM = £517
- 30 mile radius £10/t £75/ha GM = £472
- 50 mile radius £12/t £90/ha GM = £457
- 100 mile radius £15 £112/ha GM = £435
2009 DUAL HEMP ( STRAW & SEED ) GROSS MARGINS
Dual hemp is produced for straw and seed both of which are on contract to Hemcore. The straw will go to Halesworth for processing by Hemcore and the seed will go to Braham & Murray for cold pressing for human consumption under the “Good Oil” Brand name.
Dual Hemp Gross Margin per Hectare
The table below shows the gross margin that can be expected from a yield of 6.0 tonnes of straw and 1.2 tonne of grain per ha. Yields of up to 7.0 tonnes of straw and 1.70 tonnes of grain per hectare have been achieved resulting in a gross margin of well over £1000 per hectare.
| Tonnes Straw per hectare | 6.0 |
| Tonnes Grain per hectare | 1.2 |
| Straw Revenue March Price £142.50/tonne | 855 |
| Grain Revenue March Price £478.00/tonne | 574 |
| Total Revenue | 1,429 |
| Variable Costs: | |
| Seed | 125 |
| Fertliser | 235 |
| Chemical | 13 |
| Combining | 60 |
| Cutting | 60 |
| Raking | 10 |
| Baling | 66 |
| Dressing & Drying | 48 |
| Total Costs | 617 |
| Gross Margin Before Haulage | 812 |
- Haulage to Plant
- 10 mile radius £4/t £24/ha GM = £788
- 30 mile radius £10/t £60 GM = £752
- 50 mile radius £12/t £72 GM = £740
- 100 mile radius £15/t £90 GM = £722
- More than 100 miles £24/t £144 GM = £668
The above is based on combining, cutting with the new multi-cutter and then square baling.
NB. Figures printed on this page are a guide for comparison only and may not be actual.
