Tillage – an unlevel playing field was the theme of a recent conference on the challenges and general state of the sector. It was organised by the Irish Tillage and Land Use Society (ITLUS) and kept a very practical theme which reflects the mood of many growers. This report primarily relates to one presentation on getting the basics right.

Asked about potential field yields from the best fields of different crops, two of the afternoon speakers, Dick Fitzgerald from Ladysbridge in Cork and Mervyn McCann from Athy, Co Kildare, were in broad agreement.

For these two excellent growers, 5.5t/ac is deemed realistic for winter wheat, 5.2t/ac for winter barley and 3.5+ t/ac for spring barley. These magnitudes of yield must now form the focus of discussion for every serious tillage farmer.

Speaking on this topic, Shay Phelan of Teagasc said that better farmers achieve higher yields on a consistent basis, but not necessarily in the same field, as rotation also has a part to play. These differences generally come down to the simple principles of farming.

Such yield differences can be clearly seen in national farm survey (NFS) figures for spring barley and winter wheat. These same NFS figures show that total costs are no higher on these higher-yielding farms and this automatically means higher profitability.

The fact that good farmers produce consistently good yields forces questions about the production decisions. Shay put these performance differences down to simple practices that relate to:

  • Analysing the performance of the different aspects of the business.
  • The necessity for planning.
  • Good crop management over the years.
  • The necessity to market.

    • Analysis

    Shay said that financial analysis is critical in any business. At its simplist this implies bank statements, but farm accounts can tell much more and these are often not studied.

    Knowing the cost levels of the different cost items enables one to more easily compare with fellow farmers.

    Equally, a discussion on yield levels can reveal that cost, as well as yield, strongly affects potential profitability. Put simply, you cannot tackle your problems if you do not know what they are.

    Shay said that there is also a lot that can be learned from your existing crop records, again on the input and output side.

    He encouraged growers to use the various tools available to help them acquire these facts and then to use the information accordingly.

    Even the examination of agronomic practices can reveal details that can help. Yield monitoring, both within and across fields and crops, can provide very useful information.

    Growers know good fields and poor fields and also good and bad areas within fields. Identifying these can enable action to be taken. This might be a drainage issue or even variable fertility.

    Soil testing is essential and it should be considered every two to three years, especially where big crops are being taken off. Big yields remove more nutrients and they must be replaced. But even physical tests with a spade can help identify other soil problems like compaction or soil structure issues.

    Planning

    Planning is key to the success of any business – farm or otherwise. Having a plan in place helps to provide a road map for actions and evaluations and allows for continuous monitoring.

    Shay reminded us that planning begins with the basics like what do you need in terms of income just to live and to re-invest in the farm? Knowing this is key to funding any future investment and even to setting the magnitude of any expansion plan.

    Machinery is a big cost on all farms. Replacement policy must evaluate the benefit of new versus second-hand and its impact on timeliness and overall cost.

    He challenged growers to know when to justify new hi-tech purchases versus second-hand equipment and to be aware of the benefits of hiring over purchase.

    Contracting can spread machinery costs, but it will not do this if it does not make money. The exact same thing is true of scale.

    As one goes through a planning process, there are many separate and often conflicting decisions that must be made. Shay emphasised that planning should always include one’s adviser or agronomist, but it might also involve other farmers, a discussion group and wives/partners. But there are also aspects that need specialist financial advice.

    Other options such as machinery sharing, contract farming or share farming, all help to decrease the risk. Shay encouraged tillage farmers to consider partnerships with another enterprise. This could be used to produce crops, but also to possibly provide machinery and/or labour.

    But most of all, he encouraged farmers to consider the best use of their four major assets – land, farmyard, machinery and oneself. Each of these is a potential income-earning asset.

    Crop management

    There are many different specifics that growers can introduce into crop management. These could be the percentage of different crops or specific measurements within the crop itself, such as plant or ear counts.

    Good inputs use is essential for good management. But these need to be based on information rather than hearsay or tradition. Decision-making must always include the farmer, as he/she is responsible, but this can be done in conjunction with other advice sources.

    Nutrient balancing must be driven by the farmer with help from an adviser. Different farmers who spoke at the conference were using very high amounts of P and K to reflect the very high off-takes from big yields. This is a chicken and egg scenario. High soil fertility, as distinct from applied fertiliser, is a major driver of yield potential, so building soil fertility must be a primary objective for all growers.

    Marketing

    Marketing is an essential element for successful farms. Shay said that it can be used to reduce risk in ways like forward selling, growing for premium markets or accessing new markets. Shay said that marketing is about selling oneself as well as one’s products.

    Marketing should help add value to the farm business, identify new opportunities and also help with farm budgeting. Accessing premiums can add anything from €75 to €375/ha to the bottom line, Shay stated.

    In a falling grain price market, a willingness to sell forward can present significant advantage. Shay gave an example of a grower producing 400t. Years will differ, but the example he presented showed an €18/t price advantage, on average, over a five-year period from selling 50t per month from January to August. This was compared with selling all 400t at harvest prices and the benefit amounted to €37,000 over the five years.