A forecasted rise in tillage incomes in 2020 will merely paper over the cracks of losses sustained in 2019.
Teagasc research officer Fiona Throne said there had been a €250/ha decrease in net margins in 2019 due to falling cereal and straw prices. There was a variation in gross margin per hectare across crops, with spring barley, winter wheat and winter barley down €150, €750 and €550, respectively.
Just over half of specialist tillage farms earned a positive margin in 2019.
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In 2020, margins are forecast to increase by €50/ha in spring barley and €150/ha in winter wheat and winter barley. These recoveries will be driven by an increase in cereal prices of 5% and a fall in costs of 4% due to a reduction in fertiliser and seed prices.
Throne warned that a quarter of all tillage farms would still return a negative margin in 2020.
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A forecasted rise in tillage incomes in 2020 will merely paper over the cracks of losses sustained in 2019.
Teagasc research officer Fiona Throne said there had been a €250/ha decrease in net margins in 2019 due to falling cereal and straw prices. There was a variation in gross margin per hectare across crops, with spring barley, winter wheat and winter barley down €150, €750 and €550, respectively.
Just over half of specialist tillage farms earned a positive margin in 2019.
In 2020, margins are forecast to increase by €50/ha in spring barley and €150/ha in winter wheat and winter barley. These recoveries will be driven by an increase in cereal prices of 5% and a fall in costs of 4% due to a reduction in fertiliser and seed prices.
Throne warned that a quarter of all tillage farms would still return a negative margin in 2020.
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