10th November 2001
News
10th November 2001
News |
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Husbandry Interest Rates Many experts believe that rates are nearing the bottom of the cycle. There may be another 0.25% cut in the pipeline. However, this has already been built into the long term fixed rates, and it is believed that these rates are unlikely to fall much further. This means that it now appears to be a good time to fix interest rates on term loans. The table shows the fixed interest rates that the banks are paying at present.
Source. Bank of Ireland The interest rate you will pay will depend on your record with the bank, size of loan and negotiation ability. For loans in excess of £50,000 you should be able to get an interest rate of 2 - 3% above Cost of Funds (Euribor). This would give a 7-year fixed rate of 6.3 - 7.3%. However, every case is different and lower rates are possible. Grass The past six weeks have seen some of the best growth rates in the past 25 - 30 years. As a result, grass is very plentiful on most farms. The typical picture is strong recoveries on paddocks closed for early spring grazing and plenty of grass ahead. It is taking longer to get through paddocks and the outlook is for later than usual grazing. This means that the paddocks grazed latest will be slower next spring. To compensate, it is necessary to have high covers on the paddocks that will be grazed first. These will last longer in Feb as demand from freshly calved cows builds up. So, think twice before grazing off the paddocks you have already closed for spring. Covers may be high at 1500 kgs available (3000 kgs total). This grass will be very valuable next spring. First calvers First calvers are thinner than usual in many herds. It is now essential to take out first calvers in poor condition. Target CS at calving is 3.25 to 3.50. Cows that calve below these figures will have reduced fertility, lower milk and protein levels. You need to condition score all animals and divide them into groups. Allocate grass/silage according to the required gain in condition. First calvers need extra feed because they are still growing. Also, make sure they are not being bullied within a group. If so, take them out. Maintenance is about 8 kgs silage or grass DM a day. To gain 1 kg/day a 600 kg cow will need to consume an extra 5 - 6 kgs grass or silage DM. I will publish more details on this in next week's Journal. The key message right now is to dry off all cows under 2.5 CS and all thin first calvers. Quota situation There is no doubt that the country is over quota and the situation is worsening every day. Many farmers are milking blindly on and ignoring the quota situation. They see plenty of grass to be eaten, good grazing conditions, high milk solids and high milk price - £1.20 and over. However, this is very short-term thinking if you are over quota or won't have enough quota for next spring. At, best you will be forced to cut back production by underfeeding cows. The knock-on effect will be cows in low condition and poor fertility next summer. In addition, you could end up paying a massive superlevy. Assess your position now, and take action to bring milk deliveries in line with quota. Calculate how much quota you need from Jan 1st to April 1st. As soon as you have filled the rest of this year's quota, dry the herd off. |
Copyright © : The Irish Farmers Journal 2001 |
