Grain farmers are facing a financial crisis at present. Using Teagasc crop costs and returns figures for spring barley and taking an estimated average yield of 6.7t/ha, a green barley price of €193/t (offered by Tirlán this week) and a straw income of €250/ha, a tillage farmer could lose over €46/ha on that crop – a loss of €2,300 on 50ha.

On a crop of winter wheat yielding 9.8t/ha at a price of €203/t, a farmer is set to earn around €40/ha.

In comparison, malting barley farmers, at the current average price, could make €340/ha (€17,000 on 50ha).

However, this only makes up over half of the estimated spring barley area in 2023, which the Irish Farmers Journal last week placed at 128,000ha.

These figures are based on spring barley crops grown on CAN+S at €800/t (145kg nitrogen/ha) and 13-6-20 at €890/t (28kg of phosphorus and 100 units of potassium/ha).

If farmers purchased nitrogen for their spring feed barley at €650/t, then they will barely break even at these prices, earning just €1/ha including straw income. These figures do not include land rental costs. Approximately 50% of tillage land in Ireland has traditionally been rented.

It should be stressed that these figures are based on current prices and, while there ?appears to be ample grain supplies at present, these numbers will no doubt continue to change towards harvest.

However, if the decline in income is realised, then it comes in a year when CAP payments are also being hit by convergence, which is hitting tillage incomes badly in comparison to other sectors.

Meanwhile, planting continues and in parts of the northeast as much as 50% of spring cereals were still to be planted at the start of this week.