Miscanthus Contracts - Alternative Cash Crop

As many of you will know, we have been pushing the benefits of Miscanthus for game cover for a number of years, and this year, more than ever, miscanthus has proved a saviour for many shoots.

There is now an opportunity to grow this crop as an alternative cash crop, as we have teamed up with ESG Natural Capital to offer long-term, lucrative contracts to grow this sustainable, carbon sequestering, low-input crop. We are looking for growers from across the UK although, due to haulage, the most lucrative contracts are likely to be in East Anglia and the East Midlands.

The caveat, before you read any further, is that we are looking for growers who want to grow 10ha plus and, if you have a shoot, be aware that big blocks of miscanthus can swallow up a lot of birds!

• 

• 

What is miscanthus?

Miscanthus x giganteus, sometimes known as Elephant Grass, is a very fast-growing, rhizomatous, perennial plant. It needs little to no maintenance or cultivation throughout its 25-year-plus lifespan. It is non-invasive, sequesters carbon and its roots help to stabilise soils, preventing soil erosion.

Originally planted for biomass, as an alternative to fossil fuels, there is now a growing market for its use in sustainable packaging, building materials, textiles and bedding. Under SFI 2026, miscanthus falls within the "Non-horticultural permanent crops" category.

What’s involved in Growing Miscanthus?

The crop is planted at a minimum of 20,000 rhizomes/ha, which should produce at least 10t of fibre per ha per year, once the crop is at maximum growth (this is usually by year 4/5, although you will have your first viable harvest in year 2/3). Thanks to being a perennial, once you have paid for the rhizomes and establishment, the crop can give you over 25 years of viable yield and profit. Planting in the UK is usually in April/May with harvest (cut & bale) in March/April.

How do the economics stack up?

A worked example for illustration purposes is as follows: cost of rhizomes (based on a minimum of 10ha) is around £2,500/ha (£1,000/ac) including planter hire. 50% deposit on order, 50% pre-dispatch. This means there is a significant up-front cost before any revenue is generated, but there are institutions who are happy to finance this investment. Contract price for the harvested crop can be £100/t ex-farm plus annual CPI based on a minimum 10-year contract. This can effectively result in a gross margin of £1,000/ha, index linked, subject to contract.

---

For further information about this potentially lucrative, alternative crop please contact the office on 01480 890686 or email tim@oakbankgc.co.uk