With the current feed wheat price down as low as £111/t, and feed barley down to £101/t it’s not surprising that farmers are looking at alternative crops to help boost returns in a volatile global climate.
Arable farmers have been exposed to unstable prices for years, it goes with the territory, due to uncontrollable changes in the weather and shifts in supply and demand, but British farmers are currently being exposed to particularly sharp drops in price.
Ultimately, farms need to be profitable, and in the current climate it’s becoming increasingly difficult to stay afloat.
Miscanthus can provide a buffer against any unforeseen shifts in supply and demand, and it’s a crop that doesn’t eat into profit margins because of its low input costs.
Our online calculator shows the net return £/ha each year and will calculate an average for the next 15 years, based on minimum likely crop life. This is something that’s impossible to do in arable crops because of price volatility, and that’s why we’re encouraging growers to go online, enter their crop hectarage into the calculator and see what returns they’ll get.
We update the calculator with current pricing, so it’s an accurate estimate, and farmers can input combinable crop figures for calculations particular to them. The calculation is based on a 15 year average price of £528/ha for miscanthus, and this is a conservative estimate. Terravesta contract prices are upwards only index-linked and will only continue to rise annually for 10 years or more.
This accurate projection will help with planting decisions, and will be a useful tool when presenting the business case for growing miscanthus to the bank.
Quite simply, you can plant miscanthus on marginal, even poor land, and it will go on bringing you returns for 15 years, in addition to the income from your arable crops.
With low maintenance costs, and minimal inputs, it is a very stable enterprise that fits well on almost any farm, either arable or livestock.
