Why more is no longer better

I recently noticed an interesting discussion on the internet. The topic was a new record for growing winter wheat. Normally you are happy with more kilos per hectare. However, it was about the cost per ton, which is not discussed. Who actually benefits from a higher yield? Not the farmer in this case.

If you want to reduce the cost price, it is best to harvest more kilos, that's what I always learned. At the same time, there is the maxim (certainly with wheat) that the last 2 tons costs more than the first 7 or 8. We like to show off the yield per hectare. The English call it pub yields or café kilos in good Dutch. The margin at the bottom of the line, certainly in the case of record attempts is not mentioned at all. Why not? Because they are absurd.

For who?
Admittedly, such reports about a record revenue are happy to read. That's also the reason why they're on Boerenbusiness be published. But just like so many (social) subjects, they are now seen in a different light. Does the farmer benefit from an ever-increasing yield? Who benefits from that? In a season like 2018-2019, the farmer, provided that he can benefit from high prices. Usually that selling price is not at an astronomically high level. Compared to the higher costs per hectare, it appears that the supplier of crop protection products or fertilizers in particular benefits. After all, they are always involved in these kinds of efforts and finance an important part.

Back to the online discussion. It originated among farmers in England. Why don't we look at the return per tonne of product? Ultimately, that pays the bills at your company. A simple cost price comparison immediately showed that the record holder ends up in the lower than in the upper regions in terms of return. Let's talk about that.

hot topic
If you dig a little deeper, you will end up at the heart of this discussion. The way in which conventional arable farming in the Netherlands – and throughout Europe – is structured. At the same time a difficult subject that not many people want to burn their hands on. Suppliers and producers of fertilizers and crop protection products are interwoven in all layers of the sector. From politics to the farmyard. What is their guiding role in the whole? Over a year ago wrote I already about that. You can then immediately count on a response from the companies mentioned, and there was. They do not hesitate to withdraw expensive advertising budgets, or to use this as an argument. In this way, the media keeps quiet and (too) much is recorded well.

Is a revolution necessary? Looking at the various future scenarios for the arable farming sector, I think so. The current road is a dead end. The farmer who blindly feeds on the old means and fertilization policy will not survive. An innovative new view is required. And who will help you with that, those are allies. No opponents. The revolution must come from within the farmer. Such a discussion about yield versus cost will hopefully wake up the necessary people. It is a first step towards greater entrepreneurial freedom.

The mid-engine
Unfortunately, on the same internet you see at the same time that some revolutionary farmers go straight into Che Guevara mode. In arable farming, revolution now often goes hand in hand with organic. There's nothing wrong with that. I would even venture to say that at least three quarters of the new insights into conventional arable farming have a biological basis. At the same time, it creates a gap in arable farming. You are biological, and represent everything that is 'good', or you are mainstream and a poisoner. It is precisely that middle category, which is certainly present in practice, that you hear or see little. He takes a lot of risks, is innovative, open-minded and an example for colleagues. At the same time, he cannot put a label on his product in order to recover the costs involved to some extent. That limits new innovations. The government applauds this, but is still doing (too) little.

For 80% of arable farmers, the future lies with this middle category. I'm convinced of that. So it is time to open our eyes, join forces and learn from each other. It is dire necessity. The large agro-conglomerates have huge budgets to drive innovation. Farmers are fragmented and have far fewer financial resources. Only by working together can progress be achieved and independence achieved. We have to do it together. Farmers, suppliers, advisors and also us, the media. Together we can do it and that starts with a good discussion. Also on the hot topics.

Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.