The Teagasc template contract for a cropping agreement was launched on Friday. It provides a structure for a tillage farmer and a livestock farmer to negotiate. In this agreement, the farmer sets a price and the payments are made in three instalments.

“This is to help cashflow, while also cementing the commitment of both parties to the agreement. The agreement also includes the commitment to grow and supply a specified tonnage on the date of harvest,” said Thomas Curran, Teagasc farm business structures specialist.

According to Teagasc, the contract presents a win-win opportunity for both livestock farmers and tillage farmers in 2018. Livestock farmers need to build up winter feed reserves for next winter and with the closing of silage ground already behind, contract cropping can be used in some situations to fill the gap.

While it is getting too late for sowing beet, the timing is right for sowing of maize for silage. Tillage farmers can consider growing maize on contract instead of sowing late cereal crops.

The template is free to download here.

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Still only 10% planted in many intensive tillage areas