Dairy Management: At the Carbery walk in West Cork this week, John Upton and his colleagues from Teagasc discussed the various energy-saving investments you can make on a dairy farm (see P 30 to 31). John was clear that a plate cooler can repay its value within a two- to three-year timeframe, making it one of the best investments a dairy farmer can make. It is, however, important to get the right flow rate of water to milk (2:1) so that it runs efficiently. He also suggested that, depending on how much you pay for solar panels, it can take up to 10 years for to pay back the capital investment, which in his opinion is too long.

Cow type and grass: Michael Crowley and his family have made a decision on the principles of what will make money for their business. They had a very good fertile herd of black and white Holstein cows but he has decided to use Jersey on his pure Holstein cows and Holstein Friesian on the subsequent crossbreds. He is only part of the way down that road but already he said he is beginning to see higher milk solids which he said is what his milk processor Drinagh Co-op are looking for. A clear focus on grass measurement and management is his other major business decision. In terms of stocking rate, he said he can maybe milk 140 cows on his 40ha milking platform because he is growing 14t to 15t of grass even though his farm is high and exposed.

Stage of development: Yesterday (Wednesday) there was a farm walk on the Greenfield leased farm in Kilkenny. The dairy farm is almost five years in existence and the lease expires in 10 years. The model of depreciating all capital investment to zero is difficult to replicate at farm level if large capital investment is required.

Maybe in the future other farms that may be converted a model where you place some value on capital investment at the end of the lease period can be arranged between the landowner and the farmer. The Kilkenny model is built on investing in the cows and grassland management and get that firing and throwing off cash with only the very basic capital investment. Farm staff hire in contractors as required to carry out all the heavy machinery work.

In complete contrast, last week Teagasc held a farm walk on the Browne farm in East Cork (see page 28 to 29). As you can read, the personal commitments made by the Browne family and the development of the business are built on very high stocking rates, large capital investment, and significant farm labour input. Any decision you make as a farmer into the future should be looked on in light of what resources you have available to you and the repayment capacity of the business you will develop.

I know this sounds slightly cold and not very family-friendly but that is the reality. On all Irish family farms there are other demands for cash such as education, tax, repayments to other family members etc. They all have to be met out of returns from the business.

Think carefully with a view to the future for your business. Do you want to wrap yourself up in high debt levels and have a smaller margin from the milk you produce just because you want to milk more cows? Be clear on your principles and what you want your farm can deliver.