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New 'Produce of Hectarage' Contract Announced

Date Added: 08/02/2008

Oilseed rape growers will this year be able to take advantage of a new selling contract that eliminates the risk of any losses incurred through defaulted payments.

United Oilseeds Marketing Limited has introduced a new ‘produce of a hectarage' contract for the 2008 harvest. This contract offers a major benefit to growers by enabling them to avoid the threat of a contract default.

Oilseed rape has traditionally been purchased on contracts that specify a minimum tonnage. However, if due to unforeseen circumstances such as poor weather, pest infestation or disease, the crop fails or yields are significantly reduced, farmers may have been liable to pay penalties for failing to meet their contractual terms. Whilst United Oilseeds has never followed this route of penalising farmers, the new contract has been introduced to give growers greater confidence in growing what is an important and financially advantageous break-crop.

Chris Baldwin, Managing Director of United Oilseeds said, "I strongly urge all of our members and prospective members who grow oilseed rape to look closely at this type of contract as it offers a significant advantage over ‘fixed tonnage' contracts.

"The produce of hectarage contract gives our farmer members and prospective members greater peace of mind. With climate change seemingly making the growing season and subsequent crop yields more and more unpredictable, that peace of mind could prove priceless in reducing one of the many stress factors that are inherent within modern agriculture."

Mr Baldwin concludes by stating that, "This new way of contracting has been introduced quite simply because we are a farmer owned business. As such, we remain fully focused on improving the profitability of our members' businesses".

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