Significant numbers of tillage farmers may well seek to grow forage crops as part of their spring planting mix in 2024.
Almost certainly, this will lead to a considerable increase in the area of forage maize, fodder beet and wholecrop silages drilled from this week onwards.
However, Teagasc is strongly cautioning the growing of such crops on a speculative basis. A very simple rule-of-thumb comes into play, being ‘know your final buyer before you plant’.
In other words, having a contract in place, with clear terms and a binding payment structure – is a must.
Contract cropping constitutes an arrangement where a tillage farmer enters into a formal with a livestock farmer to grow a forage crop or crops.
The reality is, that tillage farmers have the expertise and, in many cases, the machinery to grow high quality forage crops.
Significantly, Teagasc has developed a specimen contract agreement, where the growing of maize and fodder beet are concerned.
At its heart, the document confirms the key areas for discussion between the grower and the purchaser.
The Teagasc template comprises four main criteria. In the first section the parties, the grower and the purchaser set out their names, addresses and PPS Numbers. When an agreement is reached, parties sign in this section.
This is followed by a schedule, to be completed by the grower and purchaser. This deals with the matters agreed by the two parties involved – the commencement and duration of the agreement, agreed prices to be paid/t of crop, and location of land where the crops will be grown
The following schedule contains two tables to be completed, again by both parties. One is used to list and identify the crops involved in the contract arrangement while the other records the soil sample history for the lands used to grow the crop in this agreement.
The fourth section of the contract lays out the legal terms and conditions contained within the agreement that has been be reached.
Farmers are advised to seek the advice of their agricultural advisor to help them complete the terms of any contract growing agreement they may wish to enter into.
In addition, tillage farmers considering entering into such a cropping arrangement in 2024 need to be fully aware of the costs, inputs, margins obtainable and agronomy associated with producing a fodder crop on contract.
The current Teagasc Crops Costs and Returns booklet provides an indicative guide to crop margins.
Meanwhile, Co. Down tillage farmer, Allan Chambers, will be planting out 160ac of forage maize over the coming days.
Chambers said: “I am lucky in the sense that the ground available to me is very free draining. It has been possible to get on with ploughing a number of fields over recent days.
“All of our maize crops are grown on a contract basis. The potential to expand the maize acreage grown is significant at the present time.
“Given the detrimental impact that the bad weather had on silage making last year, many livestock farmers will be keen to build up their forage stocks over the coming months.
“But, the speculative growing of crops is very risky, specifically where maize is concerned. Having guaranteed customers for the final crop before planting gets under way is the best way forward.”