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GRASS

You should now have about two-thirds of the farm closed for early spring grass. These are the paddocks grazed over the last 3 to 4 weeks.

If you have less than two-thirds closed, you could be short of grass next spring. For greater accuracy, you should do a grass/feed budget for the next four months. This will show you how much grass you need to carry into the winter, in order to have enough for cows as they calve in spring. Ask your advisor or consultant to draw uo the feed budget.

If you are spreading slurry, put it out on paddocks with low grass covers. Slurry can taint pasture where there is plenty of leaf, especially in dry weather. Spring intake will be reduced.

AUTUMN YIELD

Continue to graze autumn calvers by day, but house by night. Aim for reasonably high output at low cost. Average group yields of six gallons will be supported by feeding high quality silage (75% DMD+) and 6 kgs meals. Increase the meals by 1kg for every 5% drop in digestibility.

This regime assumes cows lose about 0.5 kgs a day in weight, so cows must calve in good condition. It also assumes that cows can eat as much silage as they want. There must be no restrictions. This allows higher yielders to maximise silage intake.

QUOTA LEASES

Some farmers with quota leases running out on March 30th next year, are being put under pressure to renew for long periods at high prices. In one situation, a 15 year period was demanded.

Do your sums very carefully before committing yourself to a new lease. Remember, milk prices are set to fall, and the future of the quota system after 2006 is in doubt. If you want to renew and the price and conditions are right, then go ahead.

However, many farmers would prefer to purchase the quota outright. The current uncertainty surrounding private leasing makes it difficult to make a sound decision, and increases the temptation to renew the existing lease, almost at any cost. This is particularly true for farmers, whose income is very dependant on leased quota.

Advice is difficult to give. However, the best information I can get is that the Dept is making every effort to ensure that private lessors will be given the first option to purchase the quota when the lease expires.

Negotiations are taking place at a high level to ensure this happens. I am told that the issue should be cleared up before Christmas.

You will then know if it will be possible to purchase on April 1st. And there will still be time to renew the lease if purchase is not on.

INTEREST RATES

Some confusion has arisen about the Euribor rate quoted in last week's Journal. The rate given was 2.6%, which was the current overnight rate. You can bargain your variable rate from this by negotiating a margin with the bank.

Euribor rates change with term of loan. For example, the 12 month rate is 3.77%, the five year rate is 5.08%, with 5.37% for ten years.

Most farmers should be able to get a loan at a margin of 2% above the Euribor rate. Some farmers do much better, down to a margin of 1.5% or lower.

To get low rates, you need to put yourself in a strong negotiating position. Get a rate from another bank, preferably in a different town. Be prepared to move from your own bank, but don't bluff. Find out from other farmers and businessmen, where there is a good bank manager.

Dry period

Moorepark advice is to calve cows at condition score 3.5. This allows the fresh calver to milk off her back. Take action now to ensure that cows will reach this target when they calve next spring.

To do this you need to go through all your cows and assess condition score. Cows in good condition (3 - 3.5) can be easily maintained through an 8 - 10 week dry period.