Beet growers are offered a 25% interest-free cash advance
A 25% cash advance has been announced by British Sugar and NFU Sugar ahead of the 2022-23 season to help ease pressure on beet growers.
The deposit is interest-free and must be paid to farmers during the third week of June.
The advance is approximately four months before the date growers would typically receive payment, as it is usually paid approximately four weeks after delivery to the factory.
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To be eligible, growers will need to join the scheme, complete the current year’s acreage declaration by June 8 and have contracts with British Sugar for each of the past three years.
Farming businesses that do not meet these requirements can still discuss their potential eligibility with British Sugar account managers.
Dan Green, Agriculture Director at British Sugar, said: “With recent levels of inflation driving up input prices, sugar beet growers are facing unexpected and increased pressures. We have worked with NFU Sugar to provide practical assistance in these extraordinary circumstances.
“We recognize, more than ever, that growing sugar beets is a partnership between growers, industry partners and us as a processor. We hope this cash advance, along with the work of the Field-to-Factory Partnership, will give growers the confidence to invest in sugar beet for the long term. »
NFU Sugar Chairman Michael Sly said: “With growers across the country facing extreme inflationary pressures, I am delighted that we have been able to work with British Sugar to offer growers an advance of funds from their 2022 harvest.
“Cash flow is hugely important to a farming business, and when prices for key inputs have risen so sharply, this early injection of cash will bring some relief to UK sugar beet growers.”
The outcome of negotiations between British Sugar and NFU Sugar for the 2023-24 contract has yet to be finalized.
British Sugar works with around 3,000 growers to process 8 million tonnes of sugar beet a year and produces 1.2 million tonnes of sugar.