Tillage farmers are facing a “serious loss-making exercise”, according to the Irish Farmers' Association (IFA).
IFA grain chair Kieran McEvoy said that due to the bad weather over the summer, feed spring barley and winter wheat growers are incurring significant losses per acre, particularly on rented land.
Analysis completed by the IFA shows that a 2.6t/ac spring feed barley crop grown on rented land is losing approximately €125/acre, even after all direct payments.
‘Home to roost’
McEvoy also highlighted that the cost of rented land, which he said is inflated by new nitrates rules, and declining CAP payments are “hammering tillage farmers this year”.
“The combination of declining CAP payments, very high input costs, moderate to poor yields from a difficult growing season, high land rental costs and atrocious weather in July and early August are all coming home to roost now,” he explained.
While he noted that the weather has improved over the past 10 days, bringing better ground conditions, he said “many farmers still have winter barley straw unbaled and a significant portion of spring barley crops yet to harvest”.
Malting barley
Many of the later-sown malting barley crops are now facing very high rejection levels, McEvoy added.
"We are urgently seeking a meeting with Boortmalt on this issue, as something has to be done to alleviate the losses farmers are facing due to the high rejection levels.
“Tillage farmers are facing huge financial losses this year. It’s now clear that we will need further Government support if this sector is to still stand still, let alone increase its land area in the coming decade.
“Otherwise, we will see a massive contraction in our tillage area in the coming months and years," the IFA grain chair said.