New calculation basis for field rent
It is important that we have a solid and transparent basis for the costs we need to have covered via our projects. The large fluctuations in prices we have seen the last years illustrates the problem. Therefore, the head of department, together with the field managers and finance, has made new calculations of the field rent on our field units.
The rent is calculated as an average of the last three years cost (2020-2022). The new calculations mean that the "red" lines on the budgeting forms for the technicians will be deleted. The change will apply to all new applications and internal projects submitted after 1 July 2023. As announced earlier, the field rent will be DKK 4.93 per m² for the next year.
The changes do not include commercial projects (IV). This is because of the high overhead on these projects where ordinary costs is included. This means that field rent does not have to be paid at these projects.
Last time we raised the price for field rent was in 2021, and in the past period there have been significant increases in the prices of many products – between 50 and 100%. Among other things, repair and maintenance of machines, fertiliser, fuel, etc. has increased a lot. But also, the wish from the department to get a better cover on our agricultural machinery, which is why we have chosen to include depreciation in the calculation basis.
So, what does the ground rent include?
The field rent includes running costs and depreciation:
- Sowing seeds
- Fertilizer
- Pesticides
- Field irrigation where possible (but working hours is not included)
- Machines
- Small things such as marking sticks etc.
- Depreciation of equipment used in the experiments.
What is not included?
There is no salary included in the field rent. Therefore, all staffing used for establishing, harvest, sowing plots (requires extra hours), observations, irrigation, special treatments, and other registrations in the field during the experiment, must be budgeted separately.
Always contact the operations manager
When budgeting applications with field trials, it is always a good idea to review the project with the field manager at the location where you want your trial. Just to get clarity on what is included and what requires extra staffing.