A cut to Ireland’s nitrates derogation could cost one Cork farmer almost €30,000 in annual income, an IFA dairy committee event heard this week.

Farmers in huge swathes of the country are set to have their derogation limits cut from 250kg N/ha to 220kg N/ha from 1 January on foot of an Environmental Protection Agency (EPA) report.

The financial implications of the cut were spelled out at the event by host farmer Sean Deasy. Seán’s heifers are contract reared so the farm is carrying cows only, for most of the year.

At 250kg N/ha, Seán is permitted to run a maximum of 80 cows on his 31.9ha farm and their average milk solids for 2022 was 510kg.

If the derogation limit goes to 220kg N/ha the maximum number of cows becomes 70 and available milk solids could drop by 5,100kg, based on last year’s figures. Taking a price of €5.60/kg MS, that would see annual income fall by €28,560.

Cut to 170kg

A farmer asked what Seán’s cow numbers would be like if he decided to drop numbers below the derogation threshold of 170kg N/ha.

This scenario would see numbers drop to 53 cows and the potential loss of 13,770kg of milk solids and the loss of €77,112 in milk sales.

Looking at the impact a lowering of derogation would have on the Timoleague catchment paints an equally stark picture.

This scenario would see numbers drop to 53 cows and the potential loss of 13,770kg of milk solids and the loss of €77,112 in milk sales

The 18 dairy herds have 2,521 cows between them giving an average herd size of 140 cows in herds that ranged in size from 30 to 280 cows.

Banding

The introduction of banding this year resulted in the number of farms stocked over 250kg N/ha almost doubling from five to nine farms. To stay within derogation, farms stocked over 250kg N/ha exported slurry. To fill the nutrient gap created by the export of P and K, they then had to purchase artificial fertiliser. Banding also pushed the number of farmers stocked over 220kg N/ha from nine farms in 2021 to 13 this year.

Figures presented at the event also showed three scenarios if the derogation changes and the option to export slurry isn’t available. At 250kg N/ha, cow numbers in the catchment could fall by 134 or 7%. At 220kg N/ha cow numbers would drop by 370 or 19% and if all the farmers chose to leave the derogation programme and have stocking rates under the 170kg N/ha cut off point the result would be a drop off of 42% or 840 cows.

Bad practice

Ted Massey, head of nitrates at the Department of Agriculture, acknowledging at the event that the Timoleague catchment was the only one of the six agricultural catchments to show a decline in nitrate levels. He attributed this to farmers working together and praised the farmers for their efforts.

Commending that cooperation, he challenged farmers to call out bad practice such as spreading slurry in the closed period. This type of activity was detrimental to water quality and was putting the derogation and farmers livelihoods at risk, he said.

Although in agreement with his sentiments there was a little push back against this, as farmers and industry personal argued that it was up to the Department or the relevant county council’s responsibility to ensure regulations were adhered to.

Cow culls, and policy pivots all got air time but chief among the concerns expressed by farmers

Highlighting that the dairy industry underpins rural Ireland, he said in discussions with the Commission, the department argued strongly against what they were proposing because Ireland could see it wasn’t scientifically justified and that it wasn’t giving time for the measures that came in last year and this year such as banding.

He also mentioned that a €60m water quality European Innovation Programme, which sought submissions last autumn, was due to be launched shortly. This would enable more farmers to implement measures to improve water quality. Some €50m of the funding for this EIP will come from the Department of Agriculture, with the Department of Housing providing the balance.

Concerns

Cow culls, and policy pivots all got air time but chief among the concerns expressed by farmers at the event was the socioeconomic impact the loss of the derogation could have both within the farm gate and on the farming community. Increased competition for land as already witnessed this year after the introduction of banding, led not just to beef and tillage farmers losing out to large dairy for land leases but smaller dairy farmers lost out too.