A friend who’s a cropping farmer had signed up deals selling grain for winter feed to dairy farmers which they are now cancelling.
Earlier in the year the Farmers Weekly reports that dairy farmers were walking away from maize deals, leaving contractors with as much as a third of their crop unsold.
The milk payout has fallen and next season’s forecast is lower than this season’s. The price of grain has also fallen, but would these farmers have paid more had the price gone up after they’d signed the deal?
In our area we like to think we can still do business on a handshake, but thses examples show there is a growing number of people for whom their word is no longer their bond.