Cotton Choices™ on for 2011/12: Monsanto Australia announced today that its much valued Cotton Choices™ program is to be offered to the cotton industry for the third consecutive year.
Cotton Choices™ gives growers greater flexibility and choice in managing cash flow and production risks, by enabling them to be in control of how and when they pay for crop technology fees.
Peter O’Keeffe, Monsanto Australia Country Lead, says the program has evolved over time.
“We began reviewing the current 2010/11 Cotton Choices™ program immediately after planting concluded last season, which included understanding how industry responded to the program, the reasons growers made their different choices and how we could continue to improve the program.”
“We know that as industry evolves over time and seasons vary, we too need to ensure our offering suits growers’ changing needs and circumstances, so the risk sharing package remains workable and useful.”
The 2011/12 Cotton Choices™ program offers growers of Bollgard II® stacked with Roundup Ready Flex® the choice of:
opting for a price discount on technology licence fees;
selecting the added value of Late Crop Removal (LCR) and extended payment terms; or
paying a set End Point Royalty (EPR) per bale as their cotton is ginned.
Mr O’Keeffe says a major finding from the last two years of the program was the importance of cash flow.
“Formal feedback to Monsanto shows that cash flow conservation is a far more important consideration than the interest on crop finance alone for the vast majority of growers. Hence, providing growers with a choice to minimise cash-flow risk and smooth the business cycle helps business management throughout the season.
“In other words, the extension of technology fee payment terms beyond the start of ginning is a key benefit for growers.”
He says given this feedback, the 2011/12 Cotton Choices™ program has been adjusted to lengthen grower payment terms beyond the start of ginning for Late Crop Removal, historically growers’ most popular marketing option.
“Monsanto remains committed to the principle of viable risk-sharing and providing growers with a choice in matching their unique farming operation to a technology payment choice.”
For more information on Cotton Choices™ 2011/12, please contact your local Monsanto Regional Business Manager on 1800 0659 569
Issued by: Keryn Mclean, Corporate Affairs Ph: 03 9522 7165 Mob: 0409 536 446
Keryn Mclean, Corporate Affairs Ph: 03 9522 7165 Mob: 0409 536 446
Michael Worthington, CEO, PMA A-NZ Mob 0409 181 034
Steve Ogden-Barnes, Unit Chair for Practicum and Internships Deakin Graduate School of Business, Deakin University Ph: 03 9244 5021
About Monsanto Company: 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. To learn more about our business and our commitments, please visit: www.monsanto.com