Fertiliser – Buy or hold off

I have had a lot of calls this week after last week’s Irish Farmers Journal analysis on fertiliser prices. Farmers are wondering whether to hold off buying for another while or bite the bullet and purchase now.

My advice would be to hold out for as long as you can. Many drystock farms are not very heavily stocked and don’t have a huge requirement for early nitrogen application.

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A better strategy would be to use the current good ground conditions to get some slurry out – 2,500 gallons/slurry/acre is the same as spreading 20 units/N/acre and will come in at a lot lower cost than what is being paid for fertiliser at the moment.

Silage fertiliser is likely the biggest amount of fertiliser that will be spread on drystock farms, and there’s a month or so to go before that needs to go out on most farms.

This time last year there was a real concern about supplies and that concern isn’t there this year, so I wouldn’t panic for another few weeks.

Concentrate on the slurry for now and also take a look at soil samples to see where the farm needs lime. That’s a much better investment and will help ensure any fertiliser that is spread later in the year works to maximum efficiency.

Buying cattle

I spoke to a few people over the last two weeks who are gearing up to buy cattle to summer graze. It’s a difficult one this year with the mart trade currently performing really well.

A solid beef price has really driven on the forward store and finished trade, and this in turn has had a knock on effect of increasing the pries of lighter cattle.

The most important thing to do is do your own sums and gauge the amount of risk that your or your bank account are willing to take.

Just because Paddy and Jimmy are paying €3.50/kg for store cattle doesn’t mean you have to, and it’s important not to lose the head in the heat of battle around the ring. Do your budget and stick to it and build in some different beef prices.

The short term outlook for beef price is pretty positive, but buying a 350kg weanling for finishing is a long keep animal and a lot can happen in 12 months. Budget €50 for buying and €50 for selling costs.

You need to factor in €1.20/head/day for grazing and €3-€4/head/day for finishing period in the shed depending on meal costs and finishing system. You also need to factor in another €20-€30/head for health costs.

You also need to include in some fixed costs, interest if money is borrowed and labour to make sure you are covered. These are rough figures but will give an idea on where you need to pull out when around the ring. Budget before you buy.

Turnout

It’s been ideal conditions over the last two weeks to try and get some weanlings out. Push the boundaries a little and try and get some stock out if you can.

Remember grazing off heavy swards now will kick start growth and leave the farm in a better situation for grass in April. Check out the articles in this week’s fertiliser focus for tips and advice on early grazing.