Farmers will be paid a higher price for distilling barley over malting barley. They will also be paid a higher bonus when the guiding MATIF milling wheat price is poor.

These are the two most notable adjustments of the Boortmalt pricing mechanism for 2018.

This is the final year of the current deal, agreed for 2017 to 2018, but changes have been made following intense farmer criticism last year, and were unveiled to growers at an IFA meeting in Carlow last night.

Distilling price

Distilling barley is harder to grow because of the stringent, low protein requirement it carries. This year it will still make up 30% of contract tonnage, with the other 70% being higher-protein brewing malt barley.

While the extent of the price top-up is still being negotiated, there will be some consideration for the efforts farmers have to make in achieving distilling status barley.

In addition, the maximum acceptable protein is being increased from 8.8% to 9.3%, a significant concession.

Base price

The other main change concerns the base price for malting barley. It is calculated off the prevailing MATIF milling wheat price. Drying costs are subtracted and the pricing bonus added in.

Both these elements are adjusted as the MATIF price rises and falls. For 2018, Boortmalt will charge no drying fee if the MATIF is below €175/t. This would increase the price paid to growers by between €5/t and €9/t.

Free haulage by truck will be provided from those areas where local depots have been closed by Boortmalt. However, only growers who spend €50/acre, excluding VAT (about €125/ha excluding VAT), will qualify.

Seed prices, much criticised in previous years, are fixed at €520/t interest-free until harvest.

A second IFA meeting has been scheduled for next Tuesday, 20 March, at the Enniscorthy Farm Centre.

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