Rapeseed is the first money. Unfortunately, it does not always belong to the farmer

Rzepak to pierwszy pieniądz. Niestety nie zawsze należy do rolnika

For many farms, rapeseed is the first source of income during harvest.
A large pool of sold rapeseed is used to repay invoices.

The first money from rapeseed – for invoices and fuel?

On many farms, rapeseed is an important crop not only for agrotechnical or logistical reasons. The economic issue is key. We know how it is, this season we continue to have problems with low valuations. Nevertheless, rapeseed allows you to obtain the first money that will be necessary to continue the harvest.

It can be noticed that this season even more farms are credited to companies. Fertilizers, plant protection products and seeds were purchased on time on many farms. Often this date is the second half of July or August. Therefore, there will be many situations when at least part of the rapeseed will be bartered, i.e. companies will deduct the already purchased funds from their sales invoices. It also happens that the entire rapeseed is intended for repayment of invoices with a deadline set for July or August (also in the case of production resources intended for other crops). Only then is the money obtained from the sale of grain used to renew production.

Some companies choose quick payment terms – 7 or 14 days in the case of rapeseed. The standard in this respect is 30 days, which is also most common in the case of cereals. Quick payment in the case of selling rapeseed becomes more important because immediately after its harvest, many farms have to purchase fuel for the rest of the harvest.

We will give rapeseed for goods, and we will take the funds for rapeseed

The sad truth is what has just been mentioned. The economics of farms have changed so much that in many cases money from rapeseed does not constitute disposable income, and in fact a very large part of it will be used to repay liabilities – not so much credit loans, but often related to financing production. It is good that companies offer goods necessary to conduct field production on longer payment terms, because many farmers would not have been able to finance the renewal of production a year ago. On the other hand, let's see where we are – the profitability of production is such that we take the goods for harvesting subsequent crops. And if prices don't change, it will stay that way for a long time. We will produce in order to submit the goods to invoices in a moment. You have to be positive, but how long will such a price decline last?