This week, Aidan Brennan reports on thewinners of the Teagasc Grass 10 competition announced on Monday. The competition, supported by Department of Agriculture, FBD, Grassland Agro, AIB and the Irish Farmers Journal showcases farmers who are striving for excellence when it comes to growing and grazing grass – all with the aim of driving profitability across the range of livestock systems.
While location, land type and farming system are often used as justification for poor grazing practices, the finalists in the competition dispelled these myths. The 14 farms selected operated dairy, beef and sheep systems and were located from the north to the south of the country. Land type varied from free-draining to exceptionally heavy soils and the common challenges around fragmentation had to be overcome. Despite this, the group achieved phenomenal performance, growing an average 15.5t/DM/ha over the course of the 2017 season.
What set these farmers apart was their focus on doing the basics right in relation setting up the farm to grow and graze as much grass as possible, all underpinned by investment in grazing infrastructure, soil fertility and reseeding and matched with excellent grazing management practices.
Dr Pat Dillon of Teagasc highlighted the need for farmers to pay more attention to driving output from outfarms, which often do not receive the same attention when it comes to reseeding, soil fertility or grazing management. Dillon also used the event to warn farmers of the risk of losing focus on the grass-based model in the wake of what has been an exceptionally difficult grazing season.
There is no doubt his warning is timely, with many farmers commenting on how well cows milked throughout the summer when grass deficits were replaced by increased concentrates. While a valid comment, we should not look at output in isolation as an indicator of profitability. While output may have been maintained, or even increased in some cases, replacing grass with concentrates has seen costs of production soar, with a dramatic decline in profitability – as highlighted at the Teagasc review and outlook conference (see below).
We have seen the trend in New Zealand where after difficult grazing years, when concentrate feeding at grass was required, the practice continued into subsequent years aligned to a reduced focus on grassland management. The end result is a significant reduction in the competitiveness and resilience of their system.
Choice
Irish dairy farmers will have a choice to make in 2019 but it is one that should be shaped by the profitability delivered in 2018 and not milk output. As shown by the Grass 10 competition, the ability to deliver a high percentage of an animal’s annual feed requirement from grazed grass is what gives Ireland its competitive advantage – whether it be in dairy, beef or sheepmeat production.
Unfortunately it is a competitive advantage that remains largely untapped on many farms across the country, with average grass growth at national level being just 50% of what was achieved by the 14 finalists. Depending on system, this 7-8/t/DM/ha lost equates to a loss in revenue of between €700/ha and €1,300/ha.
We have to question why it is the case that, despite millions of euro being invested each year into knowledge transfer schemes and advisory services, so many farmers are not maximising the main resource on their farms.
We need to look at how the message is being communicated, the tools available to farmers and perhaps most importantly how the CAP can be used to drive the change in farmer behaviour. With greater flexibility promised as part of CAP 2020, we should look at how we can use funds to unlock the potential of our grazing system.
We know the steps that need to be taken – investment in grazing infrastructure, soil fertility and reseeding. All are areas which, despite the potential to improve both economic and environmental sustainability, have not been supported through the CAP in the past. Clearly it’s time for a rethink.
Dairying is not the only show in town
Although dairying continues to out-perform all other enterprises financially, retuning an average net margin of €1,200/ha, figures released this week at the Teagasc Outlook conference show it is not the only show in town.
Teagasc forecasts top-performing tillage and lowland sheep farmers will achieve a net margin of €750/ha and €610/ha respectively in 2018, albeit that tillage incomes were boosted by an unexpected 30%-40% increase in cereal prices and higher straw demand. When looking at alternatives to boost income, the sheep sector deserves much closer attention than it is receiving.
The Teagasc forecast shows why there is such frustration among suckler and beef farmers, with both enterprises forecast to return negative net margins in 2018. The sector’s future will undoubtedly be shaped by the next CAP reform.
While weather conditions have hit incomes in the sector, the Teagasc figures reinforce the resilience of our dairy model. Despite an exceptionally difficult year, the average family farm income on dairy farms is forecast to be about €67,000. While down 22% on the record levels achieved in 2017, the sector demonstrates the ability to deliver a viable income even in a year where costs are forecast to increase by 11% and milk price to reduce by 7%. Of course, averages ignore those farms severely affected by drought.
Withdrawal agreement hangs by a thread
The Brexit withdrawal agreement hangs by a thread after another volatile week in UK politics. On Tuesday, Theresa May suffered multiple defeats. Not only was her government found to be in contempt of parliament, but MPs also voted to allow parliament take control of Brexit should the Commons vote down the prime minister’s deal next Tuesday. The political instability in a country on which the fortunes of the Irish economy is so dependent is worrying. However, the fact that a serious debate on Brexit is finally taking place may help provide some clarity. Our markets specialist Phelim O’Neill will have regular updates on farmersjournal.ie.
Passing of man who set solid foundation for FBD
Last week, the former chief executive of FBD, Paul O’Callaghan passed away. He followed Brian Colivet who had been the founding chief executive of the company and had been brought in by Paddy O’Keeffe, then editor of the Irish Farmers Journal, to start the fledgling company in the early 1970s.
Both men contributed enormously to establishing a stable foundation for FBD and set in place the system where farmers would deal directly with the insurance company through their local office rather than through brokers.
The system gave farmers a stable relationship with the company which has continued to serve it well to this day.
Both men were accountants by training and ran the company with exemplary prudence while ensuring its growth and market share continued to grow.
Solutions to the emissions challenge
Delegations from the nations of the world, including Ireland’s Department of Agriculture, are gathered in Poland to write the rulebook on the implementation of the 2015 Paris climate agreement. As Thomas Hubert reports on page 5, this happens at a time when new figures show a 2.9% increase in greenhouse gas emissions from Irish agriculture last year. This was driven by dairy expansion. The EPA has acknowledged increased efficiency in the sector, but more can be done, including through the promotion of on-farm renewable energy generation. Our Focus shows the solutions exist, and farmers are eager to use them.
This week, Aidan Brennan reports on thewinners of the Teagasc Grass 10 competition announced on Monday. The competition, supported by Department of Agriculture, FBD, Grassland Agro, AIB and the Irish Farmers Journal showcases farmers who are striving for excellence when it comes to growing and grazing grass – all with the aim of driving profitability across the range of livestock systems.
While location, land type and farming system are often used as justification for poor grazing practices, the finalists in the competition dispelled these myths. The 14 farms selected operated dairy, beef and sheep systems and were located from the north to the south of the country. Land type varied from free-draining to exceptionally heavy soils and the common challenges around fragmentation had to be overcome. Despite this, the group achieved phenomenal performance, growing an average 15.5t/DM/ha over the course of the 2017 season.
What set these farmers apart was their focus on doing the basics right in relation setting up the farm to grow and graze as much grass as possible, all underpinned by investment in grazing infrastructure, soil fertility and reseeding and matched with excellent grazing management practices.
Dr Pat Dillon of Teagasc highlighted the need for farmers to pay more attention to driving output from outfarms, which often do not receive the same attention when it comes to reseeding, soil fertility or grazing management. Dillon also used the event to warn farmers of the risk of losing focus on the grass-based model in the wake of what has been an exceptionally difficult grazing season.
There is no doubt his warning is timely, with many farmers commenting on how well cows milked throughout the summer when grass deficits were replaced by increased concentrates. While a valid comment, we should not look at output in isolation as an indicator of profitability. While output may have been maintained, or even increased in some cases, replacing grass with concentrates has seen costs of production soar, with a dramatic decline in profitability – as highlighted at the Teagasc review and outlook conference (see below).
We have seen the trend in New Zealand where after difficult grazing years, when concentrate feeding at grass was required, the practice continued into subsequent years aligned to a reduced focus on grassland management. The end result is a significant reduction in the competitiveness and resilience of their system.
Choice
Irish dairy farmers will have a choice to make in 2019 but it is one that should be shaped by the profitability delivered in 2018 and not milk output. As shown by the Grass 10 competition, the ability to deliver a high percentage of an animal’s annual feed requirement from grazed grass is what gives Ireland its competitive advantage – whether it be in dairy, beef or sheepmeat production.
Unfortunately it is a competitive advantage that remains largely untapped on many farms across the country, with average grass growth at national level being just 50% of what was achieved by the 14 finalists. Depending on system, this 7-8/t/DM/ha lost equates to a loss in revenue of between €700/ha and €1,300/ha.
We have to question why it is the case that, despite millions of euro being invested each year into knowledge transfer schemes and advisory services, so many farmers are not maximising the main resource on their farms.
We need to look at how the message is being communicated, the tools available to farmers and perhaps most importantly how the CAP can be used to drive the change in farmer behaviour. With greater flexibility promised as part of CAP 2020, we should look at how we can use funds to unlock the potential of our grazing system.
We know the steps that need to be taken – investment in grazing infrastructure, soil fertility and reseeding. All are areas which, despite the potential to improve both economic and environmental sustainability, have not been supported through the CAP in the past. Clearly it’s time for a rethink.
Dairying is not the only show in town
Although dairying continues to out-perform all other enterprises financially, retuning an average net margin of €1,200/ha, figures released this week at the Teagasc Outlook conference show it is not the only show in town.
Teagasc forecasts top-performing tillage and lowland sheep farmers will achieve a net margin of €750/ha and €610/ha respectively in 2018, albeit that tillage incomes were boosted by an unexpected 30%-40% increase in cereal prices and higher straw demand. When looking at alternatives to boost income, the sheep sector deserves much closer attention than it is receiving.
The Teagasc forecast shows why there is such frustration among suckler and beef farmers, with both enterprises forecast to return negative net margins in 2018. The sector’s future will undoubtedly be shaped by the next CAP reform.
While weather conditions have hit incomes in the sector, the Teagasc figures reinforce the resilience of our dairy model. Despite an exceptionally difficult year, the average family farm income on dairy farms is forecast to be about €67,000. While down 22% on the record levels achieved in 2017, the sector demonstrates the ability to deliver a viable income even in a year where costs are forecast to increase by 11% and milk price to reduce by 7%. Of course, averages ignore those farms severely affected by drought.
Withdrawal agreement hangs by a thread
The Brexit withdrawal agreement hangs by a thread after another volatile week in UK politics. On Tuesday, Theresa May suffered multiple defeats. Not only was her government found to be in contempt of parliament, but MPs also voted to allow parliament take control of Brexit should the Commons vote down the prime minister’s deal next Tuesday. The political instability in a country on which the fortunes of the Irish economy is so dependent is worrying. However, the fact that a serious debate on Brexit is finally taking place may help provide some clarity. Our markets specialist Phelim O’Neill will have regular updates on farmersjournal.ie.
Passing of man who set solid foundation for FBD
Last week, the former chief executive of FBD, Paul O’Callaghan passed away. He followed Brian Colivet who had been the founding chief executive of the company and had been brought in by Paddy O’Keeffe, then editor of the Irish Farmers Journal, to start the fledgling company in the early 1970s.
Both men contributed enormously to establishing a stable foundation for FBD and set in place the system where farmers would deal directly with the insurance company through their local office rather than through brokers.
The system gave farmers a stable relationship with the company which has continued to serve it well to this day.
Both men were accountants by training and ran the company with exemplary prudence while ensuring its growth and market share continued to grow.
Solutions to the emissions challenge
Delegations from the nations of the world, including Ireland’s Department of Agriculture, are gathered in Poland to write the rulebook on the implementation of the 2015 Paris climate agreement. As Thomas Hubert reports on page 5, this happens at a time when new figures show a 2.9% increase in greenhouse gas emissions from Irish agriculture last year. This was driven by dairy expansion. The EPA has acknowledged increased efficiency in the sector, but more can be done, including through the promotion of on-farm renewable energy generation. Our Focus shows the solutions exist, and farmers are eager to use them.
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