Delta Agribusiness and GrainCorp today announced the launch of Precision Area Contracts (PAC), a new grain contract product that removes washout risk for growers.
Precision Area Contracts combine the latest in precision agriculture technology with the experience and security of traditional marketing methods.
Managing Director of Delta Agribusiness, Gerard Hines said: “Precision Area Contracts are an example of the real and tangible value that can be created in this digital era, and is one of the biggest steps forward in the application of precision agriculture to actually hit the market. While initially a pilot program, we are confident that the product will deliver real value to growers and we are excited to be launching this pilot program in partnership with GrainCorp across New South Wales.
“We have seen a significant rise in the role of technology in the planting, in-crop management and harvest stages, and wanted to extend this advantage to grain marketing, delivering more value to growers. By using on-the-ground agronomy and real-time data provided through our Farmers Edge precision software platform, and DAWWN (Discovery Ag Weather & Water Network) there is a clear opportunity to create objective and consistent evidence around crop performance during the growing season.
“This data is then used to create accurate and transparent yield forecasts which is important for growers to be able to better hedge their pricing and take advantage of higher forward prices, without the risk of costly and adverse washouts,” said Mr Hines.
GrainCorp’s Domestic Marketing Manager, Michael Roche said: “GrainCorp is committed to exploring innovative farming solutions that add value to our customers. By giving growers the ability to commit a defined area to a forward contract - with no washout risk - is a game-changer. As a result, we are already seeing significant interest from growers.
“By partnering with Delta we have been able to create a unique product which manages risk and enhances value for growers on their dry land cropping production, including wheat and canola. This enables growers to commit to prices earlier in the growing season which is a big win for growers and provides security for our end customers,” Mr Roche said.
To participate in the PAC contracts, growers need to be signed up to the Farmers Edge ‘Smart Solutions’ product via Delta Ag, and agree to share the crop health reports and production data with GrainCorp for the area that is contracted. Additionally, all production produced off the contracted area must be marketed to GrainCorp via Delta Grain Marketing.
For further information about the Delta Ag & GrainCorp Precision Area Contracts, growers should contact a Delta Ag agronomist or Mick Parry, on 02 6772 0000