ARABLE farmers have the opportunity to grow spring oilseed rape for use in electricity generation on a unique, guaranteed £150/tonne contract.

The Springdale Group is looking for farmers to grow 10,000 acres of spring rape in 2005, and expects to be in a position to expand that to 50,000 acres for planting in autumn 2005.

The contract guarantees to buy 20pc of the crop for £150/tonne plus an oil bonus related to energy (together with the Government's Energy Payment).

The remaining 80pc of the crop will be bought under a separate contract, with the option for an unspecified portion of it to transfer to the energy contract according to demand.

"The knowledge and experience of Springdale's Oil and Meal Trading team will ensure that this is a 'no lose' option for growers", says James Mackay, the company's national sales manager.

"Growers will buy SW Semundo's Landmark oilseed rapeseed at an attractive rate from Springdale's authorised distributors.

"This variety has stiff, short straw which gives it good standing power and lodging resistance, is early maturing and has above average oil content. This combination of qualities makes it ideal for this contract."

Mr Mackay said early commitment by growers would be rewarded in future.

"We fully expect the whole 50,000 acres we contract for autumn 2005 planting to go for electricity generation," he said.

"We are looking to provide UK growers with an enduring, stable contract which will allow them to make real, long-term business plans."

The seed supplied from spring 2005's plantings will all be processed at a new Bio-electricity generating plant at Springdale's headquarters at Rudston, near Driffield.

The company will ensure consistent operation of the plant because it can run on other UK oilseeds besides rape.

It is already discussing other supply options with several leading grain trading groups and other parties:

"We are already in the process of setting up additional bio-electricity plants at disused pitheads in the former Selby coalfield. The demand for this crop is set to increase dramatically during the next 18 months as this project moves ahead," said Mr Mackay.

Farmers interested in the contract should contact Mr Mackay on 01262 421100