‘Assess contracts to maximise rape profits’

OILSEED rape growers across the East of England are being urged to increase returns from this year’s crop selling at the right time using the right trading channel.

Andrew Wilson, United Oilseeds area manager for Lincolnshire, said arable farmers should seek professional help in a bid to maximise returns from this year’s harvest.

“Too many farmers still view oilseed rape as a low profit break crop that is only grown in order to keep the soil in good condition between consecutive crops of wheat,” said Mr Wilson.

But an increased demand for vegetable oils and a significant increase in demand for biofuel production has seen the value of oilseed rape rise to a level where the crop was now one of the most profitable options, he added.

“In particular, the latest Renewable Energy Directive has helped to maintain the demand for non-food oil crops and is helping to keep the market for oil crops including oilseed rape, linseed and soya buoyant.

“As a result, oilseed rape is currently one of the best performing and most profitable crops in terms of gross margin per hectare.  In fact, winter oilseed rape is estimated to make a gross margin of £530/ha based on current market prices and variable costs.”

In comparison, first wheat is predicted to return £506/ha whilst winter oats will realise £440/ha. Winter beans, second wheat and winter barley are predicted to make less attractive margins, all of which are estimated to be below £400/ha.

But Mr Wilson warns that unless farmers proactively market their oilseed crop and seek the best market outlet, they risk not realising the full value of this year’s harvest.

“A minority of farmers in the UK still give little thought to the way they sell their oilseed rape, choosing simply to accept the first price they are quoted in order to get the crop off the farm before the main wheat harvest commences.”