Farming News - New fixed premium contracts reinforce naked oat value

New fixed premium contracts reinforce naked oat value

Fixed premium Superioat contracts of £35/tonne over feed wheat announced by Suffolk-based GB Seeds for harvest 2012 make naked oats an increasingly attractive proposition for growers across the country.  Especially so as Masstock Farm Consultancy (MFC) analyses show the crop is currently delivering gross margins comfortably higher than many second wheats.

"Quality British-bred varieties like Grafton and Fusion have delivered over 8 tonne/ha (3.3 t/acre) this season to earn gross margins of £1400/ha or more for some growers, reports GB Seeds naked oat specialist Ed Wadsworth. "But even at a more modest 6 t/ha, MFC figures show gross margins of £700-£750, making the crop a better earner than a 9t/ha second wheat at £155/t.

"Our new fixed premium over feed wheat contracts provide the best possible assurance of value from a crop for which our business has developed growing demand in both the human food and animal feed markets over the past 20 years.  

"At £80-100/t this season, naked oat straw is generating significantly better returns than barley straw, while variable costs are running at around £400/ha – about the level of spring oilseed rape. It all adds up to a very attractive package."

Ed Wadsworth points out that naked oats have the extra attractions of a true wheat  break with no take-all carryover,  a wide autumn drilling window, an opportunity to extend  the oilseed rape rotation and a timely harvest for subsequent wheat or oilseed rape planting.

Superioat contracts for 2012 harvest, together with the best possible agronomic advice on making the most of them, are currently available through Masstock outlets across England and Wales.