Identity Preserved Contracting

Guidelines for IP Contracting

"Canola seed that makes canola better."
A production contract with Nexera* canola puts you in control of producing canola with a very specific quality, which has been requested by suppliers for end-users.

The basic objective of the production contract is to make sure Natreon* canola oil meets certain defined quality standards. Most of the production specifications are things you already do as an experienced canola grower:

• Follow rotations. Ensure the contract crop is part of a sound agronomic rotation.
• Use the right seed. Plant only variety designated for contract acres.
• Seed clean. Before seeding a contract crop, carefully clean out your seeding equipment to minimize risk of contamination by other varieties.
• Manage weeds. Scout your fields early so you can control weeds that could contaminate the crop through cross pollination.
• Harvest clean. Before harvesting a contract crop, carefully clean harvesting equipment and proposed storage areas to minimize risk of contamination by other varieties.
• Store carefully. Clearly mark contract crop bins to prevent mix-ups when the grain is delivered.
• Deliver clean. Ensure all grain handling and transportation equipment is cleaned prior to loading, hauling and delivering.

Facts on Identity Preserved
Identity Preserved (IP) production is simply a method of segregating crops to ensure that the buyers get exactly the quality they need. In general, the process is not that different from many of the high quality production methods you probably take pride in using right now. But IP let's you use those skills to grow crops with specific traits for end-users.

As a canola grower, you have already used IP products on your farm. For example, when you buy a bag of seed of a particular variety, you expect that it has been identity preserved to be that variety and nothing but. In commercial farming, IP production applies the same process to your farm production efforts, identity preserving what you produce, harvest and deliver.

For canola growers, that's a small change from harvesting and storing all varieties together, without regard to whether it is HTC, hybrid or grown from common seed. But it's a change that's vital to guaranteeing qualities that will keep canola a winner in fiercely competitive world oilseed markets, and benefit the entire canola industry.

What the Grower Opportunities Are

• Guaranteed market. You are assured a market for 100% of grain produced from Nexera canola varieties.
  
• Competitive contribution margins. You receive production premiums that help ensure competitive contribution margins for Nexera canola variety growers. (Contribution margin equals gross return minus variable costs.)
  
• Strong canola genetics. The agronomic specifications of Nexera canola varieties are competitive with elite open pollinated commodity canola varieties.
  
• Building new markets. With Natreon canola oil contracts, you're taking a direct stake in building new opportunities for the canola industry. The quality you produce is the essential first step in accessing new and higher-value markets for canola oil, and meal.