Farmers are looking forward to positive growth from cereal prices for the next two harvests, reports indicate, although rising costs may put a dent in the returns gained.
Farmers Weekly reports that according to the Loam Farm model used in agriculture, 2011 so far looks set to continue to profitable trend seen in the 2010 prices, but rent and finance charges have already risen sharply.
Additionally, consideration must be given to investing in equipment and buildings such as grain storage facilities, and the possibility that landlords will raise rents further.
"This illustrates how a profitable season or two can build cost into an arable business, which it then has to live with for a number of years," said Farmers Weekly.
Farmers can learn more about how to get more profit out of their cereal harvesting operations at the Cereals 2011 event, which kicks off at Boothby Heath in Lincolnshire on June 15th.
Typical Guttridge equipment used in the cereal industry includes:
