18 Feb 2011
GROWER DISSATISFACTION WITH SEED PREMIUM – DELANYGrain
IFA National Grain Committee Chairman Noel Delany said that many seed grain growers are extremely dissatisfied with the level of premium on offer for seed from a number of the major seed houses.
Mr. Delany said, “Initial findings from an ongoing IFA seed survey showed that the premium for spring seed barley last season ranged from as low as €20/t on the first 2.6t per acre with half the premium payable on the excess tonnage while other companies were fit to pay a full premium of up to €30/t across all tonnes produced.”
“The production of seed is a specialist job requiring dedication and attention to detail by growers. Many growers would be financially better off growing a commercial grain crop particularly when they are being paid at the lower end of the premium scale. Blue label seed is expensive and growers carry all the financial risks associated with increased production costs and seed crop failure.”
He said, “The level of premium paid must reflect the substantial increase in costs that growers have incurred in recent years. Many more specialist farmers will quit seed production if the premium does not give an adequate return on time and investment. The seed trade needs to wake up and pay growers a realistic seed premium.”