27 May, 2005

UK: This will be the year of decision for spring barley

For many arable farmers this will be the year of decision for spring barley. Unless they receive a reasonable price for malting barley, at least £90 per tonne, they will simply decide not to grow the crop in 2006, Herald & Times posted on May 26.

With the reforms of the Common Agricultural Policy in place, they do not have to grow anything to receive the new single farm payment. Selling into the feed market at £60 per tonne may be good news for the buyers in the pig and poultry sector, but the economics do not stack up for growers.

Fuel and fertiliser prices have increased by around 30% in the last 12 months, while the European Union's working time directive will have a massive impact on haulage charges.

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