The recently released Teagasc eProfit monitor (ePM) analysis for 2016 outlined the financial performance of 339 specialist cereal farmers and offered a number of interesting observations. Included here are key insights into the performance of the break crops grown on those farms.

This report provides details on the average yields, fixed and variable costs, gross and net margins, cost per tonne and average land prices for over 2,400ha of brassica, legume and root crops in 2016.

Direct payments (with the exception of coupled protein payments) are excluded from the calculations, as is the value of the farmers’ own labour.

Break crops deliver many benefits for farmers, including disease breaks, improved weed control options and soil structure improvements.

But while they provide additional crop options for farmers, net margins can vary significantly between different crops.

Crop performance

While winter and spring oats were included in the ePM break crop analysis, this article will focus on comparing the returns of fodder beet, winter and spring oilseed rape and spring beans.

Fodder beet was, by and large, the most profitable break crop, delivering an average net margin of €642/ha. Growers produced an average yield of 73.6t/ha (29.7t/ac).

Teagasc was keen to stress that most of the sales of beet were on a farm-to-farm basis, with defined quantities and time frames. Therefore, markets should be secured before deciding to plant the crop.

When protein payment is included, spring beans top the combinable-crop breaks with a net margin of €225/ha.

When the protein payment is excluded, spring beans still outperformed winter and spring oilseed rape, which had average margins of -€47 and -€17/ha respectively.

It should be noted that winter oilseed rape had below average yield (3.4t/ha) in 2016. Had output been higher, profitability would have increased substantially. Spring oilseed rape had average yields, so only exceptionally high-yielding crops returned a profit.

Maximising the potential

The report also outlines the difference between the ePM results from the average growers and the top one-third of growers, outlined in Table 1.

The difference in net margins is striking and serves as a means to demonstrate that each break crop has the potential to deliver substantially higher returns.

Fodder beet had the highest net margin, but also showed one of the largest differences between the average and top groups.

The top group achieved €586/ha (91%) more in net margin than the average producer. This was driven by 7.6 t/ha higher yield and €108/ha lower input costs. The land cost was also lower.

However, the top producers spent slightly more on machinery. Beet can also be quite machinery and labour intensive when compared with the other break crops.

There was also significant difference between the average and top growers of winter oilseed rape, with the top group having €216/ha higher net margin.

This was achieved with the help of 0.3t/ha higher yield, €24/ha less input and machinery costs, as well as €33/ha lower fixed costs.

The top group managed to reduce the production cost per tonne of rape by €46 compared with the average growers. This group also secured €13/t higher selling price than the average group.

With spring oilseed rape, the difference in net margin between the grower groups was only €27/ha. The numbers growing the crop was low, so comparisons need to be treated with caution. Top farmers had 0.15t/ha higher yield, with slightly lower variable costs but higher fixed costs.

The top group of spring bean growers produced 0.6t/ha more than the average while spending marginally less on inputs and €54/ha less on contractor costs. When protein payments are included, the difference in net margin between the two groups amounts to €95/ha.