New Seed Contract Means Early Payment For Growers

Cropmark's New Seed Contract Means Early Payment Benefit For Growers

In the face of these difficult economic times, Cropmark Seeds has taken a pro-active stance that will benefit the company's contract seed growers.

"Not only are we looking to increase the number of growers on our books," says, Cropmark CEO, Vaughan Ormsby. "We have been listening to our growers and their concerns and this season, we have introduced a new contract with a revised payment schedule that we believe will greatly benefit them. It will cost us money on the short-term, but the company is in a strong financial position, so we have made a commitment to help our farmers in the most practical way possible, by providing them with early cash prior to the onset of winter proper."

Traditionally, seed growers received split payments, the first payment being made on the 20th of the month following receipt of Purity & Germination certification and the final payment on 31st of August. Under the new payment initiative, Cropmark will make one full and final payment by the 30th of the month following receipt of the P&G Certificate. They will also pay out on any unprocessed crops as at 30th April, and farmers will receive payment on or before 31st May, based on an estimated MD yield.

"Previously, some growers would have received payments quite a bit later than others, depending whose seed was dressed first by the seed cleaning companies. Essentially, we have decided to bring all payments forward," Vaughan explains. "By changing our existing contract schedule for the current harvest, we hope to return cash to the farmers earlier than might otherwise have occurred. In these difficult times, we see the earlier payout as being of a very real and practical benefit to our growers."

Cropmark Seeds forecast that with dairy payouts down and feed grazing likely to be limited, cropping options will be sought after by many farmers looking to tap into a new income source.

"Indications are that ryegrass and clover prices are likely to be similar to those contracted last year. So Farmers looking for viable small seed options are invited to contact us and discuss taking up a contract," says Vaughan.

Further information is available on the Cropmark Seeds website.

www.cropmark.co.nz

© Scoop Media