New 'Wheat Tracker' contract aims to boost viability of herbage seed as alternative cropping option

A new "wheat tracker" contract for the major IGER-bred agricultural perennial ryegrasses should provide an added incentive for farmers to grow herbage seed as an alternative cropping option this autumn.

So says Alex Burgon of British Seed Houses, who calculates a £40.00 per 50kg (£800/tonne) price for Higher Voluntary Standard (HVS) certified seed for a variety such as AberStar based on a £100/tonne feed wheat price, using the new formula.

"Herbage seed is a highly profitable alternative crop and the option of a flexible contract linked directly to the feed wheat price should provide potential growers with greater security and confidence," he says.

"This new contract has been introduced partly in response to greater volatility in the cereal market, but also to encourage more farmers to grow herbage seed. There is high demand from UK livestock farmers for the Aber ryegrasses, and this is increasing all the time, so seed growers can be confident of a sustainable market."

The new "wheat tracker" contract applies to the main agricultural diploid perennial ryegrasses marketed by British Seed Houses, with the price being calculated in the November (50%) and March (50%) following harvest. The reference feed wheat price will be as published on www.hgca.com at 9am on the first Monday of the relevant month.

British Seed Houses will continue to offer the alternative of a minimum contract price for the IGER-bred agricultural diploid varieties, which for the 2008 harvest will not be lower than £35.00 per 50kg for HVS certified seed.