An analysis by the Irish Farmers Journal of the current margins on suckler-to-beef farms suggests that if direct payments are removed, a typical well-run suckler-to-beef unit would require the equivalent of over 460p/kg just to maintain income at current levels.

Calculations

The calculations assume 550kg of liveweight is produced per hectare, which is understood to be fairly close to the average performance of suckler-to-beef units benchmarked by CAFRE.

Included within those figures are some of the best-performing farms in NI, so the equivalent figure across all farms is likely to be less.

Vulnerable position

Assuming that direct payments are at the NI average of €330/ha, if they are removed after Brexit, and the money targeted at other areas, it leaves sucklers in a very vulnerable position.

If a farm was producing 550kg liveweight per hectare, and selling beef at an average price of 363p/kg, to make up for the lost income if direct payments go, the farmer would actually need to receive a beef price of 462p/kg.

It is a price well beyond what the current market will support. However, with over half of all NI farms keeping suckler cows, the sector remains a key part of the NI agri food industry

In the Republic of Ireland, pressure is growing on Irish Agriculture Minister Michael Creed to introduce a €200 headage payment for suckler cows.