What to pay an arable farmer per cut of grass

[HarryB97]

I'm in talks with some neighbours about them growing two year grass leys for me for silage and I then buy it off them. They want to establish it and fertilise it etc and then sell me the crop which is fine.

Would paying on a dry matter basis per tonne be fairest for both parties? If so is there a going rate?

There is a weighbridge 10 minutes away where a trailer could be weighed to get an average. It would also be ag bagged so would be quite easy to work out the freshweight based on the length of the bag as well. Obviously they want to make money out of it and I want a fair deal and need the grass due to lots of expansion so am very keen to make it work!

 

[Al R]

The normal rate used to be £1 per DM per tonne so 32%DM would be £32/tonne but that was clamped at that.
I pay £3-£6/bale as a growing charge for grass and I pay for everything from mowing-stacking, if they fertilise it they get more yield so more bales/acre.

 

[Hummin-Cummins]

£100/ ac per cut

 

[HarryB97]

The normal rate used to be £1 per DM per tonne so 32%DM would be £32/tonne but that was clamped at that.
I pay £3-£6/bale as a growing charge for grass and I pay for everything from mowing-stacking, if they fertilise it they get more yield so more bales/acre.

I had heard the figure of £1 a tonne mentioned before. If it’s a good crop and we get 3 cuts the arable farmer should get a reasonable sum. He also has all the gear to lift it as well so will be getting all that work as well.

 

[HarryB97]

£100/ ac per cut

Would be good for me but I don’t think he would be very impressed if it was a bumper crop!

 

[Al R]

Would be good for me but I don’t think he would be very impressed if it was a bumper crop!

You hadn’t said he was doing all the harvesting side to when £100/acre was said mind

 

[HarryB97]

You hadn’t said he was doing all the harvesting side to when £100/acre was said mind

True! Looking for a grass cost minus harvesting though as that figure is quite easy to agree on and find

 

[Chae1]

We have been offered grass for silage for £200/acre. Farmer has put fertiliser on which would be worth around £50/acre. I would put fert on for 2nd cut.

 

[betweenthelines]

Any way you could link it to the price of wheat so the neighbour got a similar margin + the benefit of a break crop?

 

[Skintagain]

Don’t make it too complex. This can be a bit of a minefield. Especially in lean and bumper years. Paying by weight is best by far imo. Get it tested and put on DM no other way. Then the harvesting cost on top

 

[Derrick Hughes]

Would be good for me but I don’t think he would be very impressed if it was a bumper crop!

I would suggest £40 to £50 cut if they payingfor inputs

 

[Werzle]

£100/ ac per cut

First cut would be cheap, second would be about right and third would be expensive!

 

[HarryB97]

Don’t make it too complex. This can be a bit of a minefield. Especially in lean and bumper years. Paying by weight is best by far imo. Get it tested and put on DM no other way. Then the harvesting cost on top

Exactly what I was thinking keep it simple and fair, like everything it will average out over good and bad years!