Print This PageCotton choices benefits dryland producers
20th April 2010
Monsanto’s Cotton Choices™ program is returning for the 2010/11 cotton season, giving growers greater flexibility and choice in managing their cash flow and production risks.
This years program offers growers of Bollgard II® stacked with Roundup Ready Flex® the choice of opting for a price discount on their technology licence fees; selecting the added value of Late Crop Removal (LCR) and extended payment terms; or paying a set End Point Royalty (EPR) fee per bale after their cotton has been ginned.
“We are making it easier for growers to match their production plans with the payment option and risk management program that best fits with their unique operation,” said Peter O’Keeffe, Head of Monsanto Australia.
With the Late Crop Removal (LCR) option under Cotton Choices growers are entitled to a refund on technology licence fees if for any reason their cotton crop fails, including flood, drought, hail, spray drift or other adverse events.
“I don’t know of any other crop input supplier that offers growers a 100% refund on their products if a crop fails due to events such as drought or flood. This is genuine risk sharing,” said O’Keeffe.
The launch of Cotton Choices for 2010 comes at a time when grower interest in dryland cotton is high; Monsanto has developed an end point royalty program specifically with potential dryland cotton growers in mind. “Dryland growers know that returns from cotton can be much higher than other summer grain crops, but the cost and risk of production associated with cotton growing can be higher. Cotton Choices™ is designed to take out much of this risk,” said O’Keeffe.
Using the End Point Royalty option, growers can pay for their technology fees after ginning, pushing much of their insect and weed control costs until after they have been paid for their crop. “Growers only pay for what they pick, this approach makes it much easier for cash flow management throughout the year,” said O’Keeffe.
The widespread adoption of Bollgard II and Roundup Ready Flex cotton has made dryland cotton a much simpler option for growers, with significantly fewer sprays and time required to manage pests. Dryland producers who signed up for the EPR program last year said they couldn’t imagine growing dryland cotton without cotton choices.
“Cotton production has changed considerably since the 1990’s. We know that many growers still associate cotton with endless hours on a spray rig and massive chemical supply issues, but this is certainly not the reality today. We encourage growers to take another look at dryland cotton,” said O’Keeffe.
Contact:
Keryn Mclean, Corporate Affairs Lead
Ph: +613 9522 7165 Mob: +61409 536 446
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Monsanto Company is a leading global provider of technology-based solutions and agricultural products that
improve farm productivity and food quality. Monsanto remains focused on enabling both small-holder and
large-scale farmers to produce more from their land while conserving more of our world’s natural resources
such as water and energy.
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