Fengrain tempts with minimum price contracts

Fengrain is to launch a range of new marketing contracts at the start of October in a bid to attract new members.

Called Fenpro, the contracts aim to provide an element of price security, either by guaranteeing quality premiums for milling wheats or setting minimum prices.

“They are designed to meet growers’ needs by identifying markets to grow for and to give them confidence to plant the crop,” said farmer and director, Anthony Boardman.

For instance, one contract offers a £70/t minimum price for 2007 feed wheat. “You may argue that this is not enough for the farmer to make a profit, but that is the market at present.”

Similar open-ended contracts are also available on malting barley and oats with minimum prices of £75-77/t and £70/t respectively.

The purchase of seed is not a necessary part of the deal, and there are no replacement charges if a crop fails on quality.

“At a time when we have the choice if and what to grow, these contracts give growers the tools to make that decision and eliminate the price risk.

Unfortunately they do not eliminate the weather risk!” Contracts are also available for peas, beans and oilseed rape.

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