Throughout the paper this week, we have extensive coverage of the Teagasc BEEF 2018 event held on Tuesday. The 6,000 plus farmers attending the event got a masterclass in how to do the basics of beef production well. Excellent visual demonstrations and presentations covering everything from drainage techniques to cow fertility to dairy beef systems showcased the potential that exists to improve farm profitability regardless of land type or farming system.

Despite the acres of information on show, when boiled down, the take-home message for farmers was simple – grow as much grass as possible and graze it with healthy and productive animals. The end result is not only increased profitability at farm level, but a significant reduction in environmental impact.

Teagasc head of drystock Pearse Kelly pointed out that improved technical efficiency can increase the net margin within suckling by €303 per cow over the average while reducing greenhouse gas (GHG) emissions per kg of beef output by 20-25%. Improved productivity delivered a similar result in dairy calf to beef systems.

This message should not be lost in relation to ongoing discussions around shaping the future of the next CAP. There can be no disputing that the CAP did breed inefficiencies into farming and, in particular, beef production systems. Prior to decoupling, whether you slaughtered a steer at 24 months at 380kg deadweight or at 36 months at 320kg deadweight, the subsidy support which made up the bulk of profitability was the same. With European Commissioner for Agriculture Phil Hogan promising member states increased flexibility around the implementation and design of schemes under the next CAP, there is the opportunity to correct these mistakes of the past.

What was striking as we moved from one stand to another was that, with the exception of the Beef Data and Genomics Programme (BDGP), the current CAP model does little to incentivise farmers to adopt the technologies that have been repeatedly shown to drive farm profit and deliver an environmental dividend.

In the past, environmental schemes introduced under the CAP have been weighted towards supporting low-input systems. While there is a strong argument for such schemes on more marginal land types, there is an equally strong argument that, based on the research we saw presented to farmers this week, the next CAP reform should also look to introduce an environmental scheme designed to encourage increased productivity and better utilisation of inputs.

We once again heard how just 11% of grassland farms had a soil fertility status that optimised grass growth and that farmers operating on soils with a pH of below 6 were shown to be wasting 25% of the fertilisers they applied.

In the context of trying to increase the profitability of beef production systems, while reducing the environmental impact, there is clearly a strong argument for measures under the next CAP that support investment in the key areas of soil fertility, grazing infrastructure and improved grassland management practices. According to Teagasc figures, the dividend will be up to 40% more grass and better utilisation of fertilisers.

Of course, the principle of supporting the adoption of technologies under the next CAP that drive efficiencies at farm level apply beyond just grassland management. Similar environmental and profit dividends can be delivered through targeting CAP support at improving efficiencies in relation to cow productivity and progeny performance.

Disappointing

Meanwhile, the comments made by Minister for Agriculture Michael Creed at BEEF 2018 that providing coupled support to the sector would “drive numbers at the expense of quality” and “undermine progress of the last few years” are both disappointing and confusing. No one is calling for support for the suckler herd to be thrown out like confetti. Any additional support payment should be closely aligned to encouraging farmers to implement the practices on display at the Teagasc event – practices that have been shown to deliver productivity gains and reduce environmental impact.

Heatwave is driving up costs for farmers

The current heatwave is particularly difficult on livestock. Drinking water will be more valuable than feed, especially in the extremely high temperatures baking the country this week.

Once again it looks likely that feed stocks will come under pressure and dairy farmers will be turning to their co-ops for support. The May milk price league (page 16) clearly shows the unexpected cuts to May prices.

The output side of the business based on global returns is one debate.

However, even more importantly, the inputs required at farm level to keep this supply flowing have increased dramatically, with most farmers feeding some forage and concentrate, effectively adding €2 per cow per day, which, on 100 cows is €200 per day or €1,400 per week in additional feed costs.

This excludes all the extra work involved or the cost of irrigation, which some are attempting.

When this is put alongside the €50 per cow difference in output prices between the top and the bottom of the league for the last two months, it is easy to see why some dairy farmers are finding the decisions of some co-op boards difficult to accept.

Irish Farmers Journal’s new digital offering

Over the past week, we have introduced our newly designed digital platforms. One of the core new features is personalisation, which allows you tailor both the website and apps to see what’s most relevant to your farming life. This new feature, called MyJournal, allows you to follow individual topics and writers and save articles to your own collections. An additional feature is the Knowledge Hub which provides farmers with a range of solution-focused tools. We are delighted to include in the Knowledge Hub our first digital learning platform. Developed in conjunction with Bord Bia, it is designed to help dairy farmers prepare in advance of an audit under the Sustainable Dairy Assurance Scheme (SDAS). Print readers get unlimited premium access to the website by using the unique loyalty code on the back page of Irish Country Living each week. If you have any feedback please feel free to contact me at jmccarthy@farmersjournal.ie.

Establishing ground rules on safety

With schools closing for the summer, it is worth sitting down with children and reinforcing the safety risks associated with living on a farm. Clear ground rules should be established as to where children can and cannot play. It is also worth reviewing the safety practices on the farm and looking at what steps can be taken to reduce the risk of an accident.

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What’s new at Teagasc BEEF 2018

Teagasc welcomes you to BEEF 2018