Farmer-owned co-ops must step up to the mark and lead the way in setting sustainable grain, oilseed and protein prices for growers this harvest, IFA grain chair Liam Dunne has said.

“We are heading into the fifth season of low grain prices, which will result in another year of low, if not negative, margins for many grain farmers. While exceptional yields over recent years masked the income problem, a return to more normal yields this season will compound the income crisis.

“The relentless pressure on growers’ margins has taken a heavy toll on the sector. This is clearly evident from the substantial drop of close on 52,000ha in cereal sowings since 2012. This trend will continue unless there is a dramatic turnaround in grain prices and growers’ incomes.

“So far this season, private merchants have been more active in the market with their reps proactively chasing limited grain supplies. The merchants are leading the way on pricing with up to €148/t plus free transport being paid for green barley off the combine and €10/t to €12/t of a premium on offer for wheat.

‘‘Co-ops, on the other hand, have been reluctant to quote and in some cases larger co-ops are selling off green barley at a discount to current market prices, effectively undermining the market.

“Farmer-owned co-ops must take a longer-term view and become more proactive in supporting the tillage sector,” Dunne concluded.