Irish Grain Production Viability

Posted on: 15/08/2013

IFA National Grain Committee Chairman, Noel Delany said that the viability of Irish grain production is in question as a result of the relentless increase in costs over the last few years and reduced grain prices for the 2013 harvest.

Mr Delany said, �Over the last 10 years there has been a substantial increase in input costs particularly for fuel and fertiliser. Fertiliser prices alone have increased by a massive 260% while fuel prices have gone up by over 200%. Variable production costs (including machinery hire) for spring barley have gone from �640/ha (excluding vat) in 2003 to approximately �1,000/ha today while grain prices are falling. Production costs for other arable crops have followed a similar pattern. This relentless cost price squeeze coupled with the impending reduction in growers� Single Farm Payment, additional compliance costs due to CAP reform proposals and extreme price volatility threatens the future viability of Irish grain production. Changing weather patterns have also increased the challenge to growers as evidenced in 2009 and again last year. �

Noel Delany said, �The trade must realise the seriousness of the situation and put pressure on suppliers to increase input rebates which can be passed back to growers, reduce grain drying and storage charges and up the price paid for green grain this harvest. Current price offers of �140/t to �150/t for spring barley and �10/t over for wheat will see many growers struggle to break even this year even on their own land. Marginal returns coupled with weather related production risks and increasingly complex compliance rules arising out of CAP reform will force many growers to reconsider their enterprise choice.�

�Speculative investment in grains and oilseeds by the financial community must be curtailed as it has accentuated the price volatility in recent years creating serious financial difficulties for arable and livestock producers alike. The resulting peaks and troughs in prices are creating boom / bust cycles. While the introduction of forward selling has helped to smooth prices it is not without financial risk, as was the experience of a significant number of growers last harvest. The EU along with other developed economies must move to limit speculative investment in agricultural commodities.�

OTHER FARMING NEWS FOR THE MONTH OF 08/2013

15/08/2013 - Late Autumn grazing with brassica forage
LIVESTOCK farmers facing grass and forage shortages could, in many parts of Ireland , can still sow hybrid brassicas in August to provide valuable late-autumn grazing and take the pressure off conserved feed stocks which are in short supply on most farms.

15/08/2013 - Irish Grain Production Viability
IFA National Grain Committee Chairman, Noel Delany said that the viability of Irish grain production is in question as a result of the relentless increase in costs over the last few years and reduced grain prices for the 2013 harvest.

12/08/2013 - Strong action needed on Suckler Cow Herd

12/08/2013 - 40c per litre milk price ?

09/08/2013 - Dublins Only Agricultural Show
Livestock Competition Now Open for Entries, with Judging in Breeding Classes of Cattle, Sheep and Poultry Dublin, Thursday July 25th, 2013; Flavours of Fingal County Show 2013, a unique agricultural and family event taking place in Donabate, Co. Dublin this September, has officially launched its annual livestock competitions today. Competitors are encouraged to submit their entries by August 30th 2013.

08/08/2013 - Stable beef prices Vital - IFA
IFA National Livestock Chairman Henry Burns said stable beef prices and strong live exports are vital for the store and weanling trade as we head into the Autumn. He said the critical issue is that beef prices stabilise so as feeders have the confidence to buy cattle and feed.

07/08/2013 - Shed Scam Warning
The farming community are advised to be cautious of unsolicited offers to supply a shed or shed materials. A scam that has been running in the south east is believed to have moved to the west.

07/08/2013 - 81 year old farmer gored by bull
An 81 year old farmer is in hospital with severe injuries after being gored by a bull in his family farm in west Cork. Noel Moxley was airlifted to Cork University Hospital where his injuries are described as severe but stable.

02/08/2013 - Farming Accidents highest in August
August ranks as a high risk month for accidents, with about 9% of farm deaths occurring during this month. In August, farm work is marked by considerable tractor and vehicle use associated with grass and crop harvesting. Children are off school and may have access to the farmyard. As the month goes on light levels decline, adding to the hazards. This all adds to the challenge to manage safety on farms in August. Teagasc health and safety officer John McNamara is urging all farmers to be vigilant about farm safety this month.

02/08/2013 - Challenges ahead for Grain Growing