Arable prospects have tightened at the Farmers Weekly/ Savills Virtual Farm due to a sharp fall in commodity prices, upward pressure on costs and a weaker euro. In June 2011, the production profit before rent, finance and single payment from the 2012harvest was forecast at 136.50/acre. By mid-January this had dropped to 80.69/acre. "That's a significant reduction in just seven months," says Robert Hall, associate director of Savills Agribusiness. "Wheat prices came back sharply - fears of a world shortage of grain receded and we also saw some effect of the weaker euro before Christmas. Although prices have recovered somewhat due to renewed weather concerns we are predicting an average of 141.75/t, down 20/t on last June's prediction."
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