Despite the fact that we’re only in July, we already know that as a result of the exceptional drought conditions, livestock farmers are facing into a tough winter.
Fodder supplies will be exceptionally tight, with farmers operating on light sandy soils worst affected. Our Grass+ figures show that on this type of land, growth has crashed since mid-June – a once in 30-year occurrence that no farmer, regardless of stocking rate or system, could be expected to plan for.
At this stage, any improvement in growing conditions will only facilitate an extension to the grazing season, which will reduce winter demand.
However, even with the recent rain, it is unlikely that the most drought-hit farms will have an opportunity in the coming months to conserve additional fodder through taking out surpluses. In most cases, it will be mid-August at the earliest before grass covers on these farms allow normal rotations to resume.
So, how should we respond? Unlike previous fodder shortages, where the issue was due to a late spring, there is the opportunity in this situation to put a plan in place – at national and farm level – to minimise the impact of a predictable crisis. We know that the earlier action is taken, the greater its impact will be.
This is particularly true in the case of Minister for Agriculture Michael Creed needing to make decisions quickly. The reality is that the minister has just a matter of days to really help farmers overcome the impact of one of the worst droughts in 30 years.
By far the greatest opportunity to bring additional fodder on to the market is to try to utilise tillage land to grow some form of catch/fodder crop – there is over 200,000ha either available or becoming available as the harvest progresses.
Where tillage ground is being returned to a spring rotation, a catch/fodder crop will grow late into the autumn with the potential to yield significant quantities of forage – especially if the necessary flexibility is given on the application date for chemical fertilisers.
However, we have to recognise that the economics of this are challenging for tillage farmers and that linking up the tillage and livestock sectors has always proved difficult. So, how can it be encouraged? A move by the minister to de-risk the process by subsidising crop establishment would certainly create the necessary momentum. Any payment could be calculated at point of sale with the co-op providing the necessary oversight, acting as an intermediary for fodder transactions between tillage and livestock farmers. But to have an impact, a decision from the minister is required in the next few days – in terms of the potential yield, losing a day’s growth in July is akin to losing a week in August. The quicker the minister reacts and we get seed in the ground, the greater the impact.
In a similar vein, under the GLAS scheme, tillage farmers will be sowing 22,500/ha of catch crops over the coming weeks. By bringing forward the utilisation/destruction date to October and allowing farmers to plant fast-growing ryegrasses as a single species catch crop, the minister could pull this land in as part of the fodder solution. But again he needs to act now in order to get maximum benefit. If a demand is not stated, there is nothing to encourage tillage farmers to act.
In terms of the potential yield, losing a day’s growth in July is akin to losing a week in August
Alongside this, there is also the need to be proactive in the European market regarding the sourcing of additional fodder. Again, swift action by the minister in relation to putting a transportation scheme in place will yield the greatest dividend. Delaying will only see competition for fodder from other drought-stricken regions increase in the months ahead. The IFA is suggesting a number of additional steps the minister can take.
Farmers are struggling to cope with what is a one in 30-year event and the Government’s response must be proportionate. Farmers cannot afford for the minister to adopt a wait-and-see approach.
While acknowledging the work that he has done and continues to do in relation to increasing advanced payments under the BPS, and securing the derogation on the three-crop rule, the minister has just days left to make the big calls that could significantly change the position livestock farmers may find themselves in next spring.
There is no doubt that his response in the next 48 to 72 hours will be watched closely by farmers.
Finance: process needed to fast-track cashflow loans
A review by the Central Bank this week found that our pillar banks still have some way to travel before they can be considered “customer focused”. The news will come as little surprise to farmers who often find themselves forced to jump through hoops for a period of months before getting loan approval.
While understandable in the context of large-scale loans required for major capital investment projects, the same process should not be applied to farmers seeking short-term finance to help them deal with the immediate cashflow challenges caused by the ongoing drought.
In such instances, where the client has a long-term business relationship with the bank, there clearly needs to be a fast-track process where funding can be approved for draw-down in a matter of days and not months.
Beef: co-op ethos shining in tough times
Beef processors often lament the extent to which they are portrayed by farm organisations – and indeed this paper – as having little regard for farmers.
However, as we have witnessed over the past few weeks, the esteem in which they are held by the farming community is a reflection of their own actions.
The ethos of a privately owned company versus that of a co-op has probably never been more evident than in the past few weeks.
Teagasc: advisers stepping up to help farmers
The work of the Teagasc advisory service in recent weeks should be acknowledged. Advisers across the country have stepped up in helping farmers, both clients and non-clients. There is no doubt that farmers have relied heavily on the organisation not only in terms of providing technical advice but also facilitating discussion groups, allowing farmers come together and talk through their problems. The importance of providing this platform should be applauded at this highly stressful time.
Wellbeing: freak events cause stress and strain
There is no doubt that the drought conditions are putting severe stress on farmers, coming on the back of what was a very difficult spring. It is only natural that after such a prolonged period, self-doubt starts to creep in and decisions are questioned.
The situation many farmers find themselves in at present should not be confused with failure. The reality is that in the last six months we have had what in an Irish context are two freak and consecutive weather events which no one could have planned or indeed prepared for. It is important for rural communities to support farmers, across all enterprises.
At farm level, the first step to dealing with a potential winter fodder shortage is to carry out a fodder budget to determine the severity of the situation. We have a budget calculator on farmersjournal.ie. For many farms, the most viable route will be to bridge the fodder gap with concentrates. A 15-25% fodder deficit can be overcome by increasing meal feeding levels by 2-3kg per head per day. The option to move beef animals on to an ad-lib concentrate diet is definitely worth considering early in the winter. In most cases, concentrates will work out as a more cost-effective alternative to purchasing forage.
Despite the fact that we’re only in July, we already know that as a result of the exceptional drought conditions, livestock farmers are facing into a tough winter.
Fodder supplies will be exceptionally tight, with farmers operating on light sandy soils worst affected. Our Grass+ figures show that on this type of land, growth has crashed since mid-June – a once in 30-year occurrence that no farmer, regardless of stocking rate or system, could be expected to plan for.
At this stage, any improvement in growing conditions will only facilitate an extension to the grazing season, which will reduce winter demand.
However, even with the recent rain, it is unlikely that the most drought-hit farms will have an opportunity in the coming months to conserve additional fodder through taking out surpluses. In most cases, it will be mid-August at the earliest before grass covers on these farms allow normal rotations to resume.
So, how should we respond? Unlike previous fodder shortages, where the issue was due to a late spring, there is the opportunity in this situation to put a plan in place – at national and farm level – to minimise the impact of a predictable crisis. We know that the earlier action is taken, the greater its impact will be.
This is particularly true in the case of Minister for Agriculture Michael Creed needing to make decisions quickly. The reality is that the minister has just a matter of days to really help farmers overcome the impact of one of the worst droughts in 30 years.
By far the greatest opportunity to bring additional fodder on to the market is to try to utilise tillage land to grow some form of catch/fodder crop – there is over 200,000ha either available or becoming available as the harvest progresses.
Where tillage ground is being returned to a spring rotation, a catch/fodder crop will grow late into the autumn with the potential to yield significant quantities of forage – especially if the necessary flexibility is given on the application date for chemical fertilisers.
However, we have to recognise that the economics of this are challenging for tillage farmers and that linking up the tillage and livestock sectors has always proved difficult. So, how can it be encouraged? A move by the minister to de-risk the process by subsidising crop establishment would certainly create the necessary momentum. Any payment could be calculated at point of sale with the co-op providing the necessary oversight, acting as an intermediary for fodder transactions between tillage and livestock farmers. But to have an impact, a decision from the minister is required in the next few days – in terms of the potential yield, losing a day’s growth in July is akin to losing a week in August. The quicker the minister reacts and we get seed in the ground, the greater the impact.
In a similar vein, under the GLAS scheme, tillage farmers will be sowing 22,500/ha of catch crops over the coming weeks. By bringing forward the utilisation/destruction date to October and allowing farmers to plant fast-growing ryegrasses as a single species catch crop, the minister could pull this land in as part of the fodder solution. But again he needs to act now in order to get maximum benefit. If a demand is not stated, there is nothing to encourage tillage farmers to act.
In terms of the potential yield, losing a day’s growth in July is akin to losing a week in August
Alongside this, there is also the need to be proactive in the European market regarding the sourcing of additional fodder. Again, swift action by the minister in relation to putting a transportation scheme in place will yield the greatest dividend. Delaying will only see competition for fodder from other drought-stricken regions increase in the months ahead. The IFA is suggesting a number of additional steps the minister can take.
Farmers are struggling to cope with what is a one in 30-year event and the Government’s response must be proportionate. Farmers cannot afford for the minister to adopt a wait-and-see approach.
While acknowledging the work that he has done and continues to do in relation to increasing advanced payments under the BPS, and securing the derogation on the three-crop rule, the minister has just days left to make the big calls that could significantly change the position livestock farmers may find themselves in next spring.
There is no doubt that his response in the next 48 to 72 hours will be watched closely by farmers.
Finance: process needed to fast-track cashflow loans
A review by the Central Bank this week found that our pillar banks still have some way to travel before they can be considered “customer focused”. The news will come as little surprise to farmers who often find themselves forced to jump through hoops for a period of months before getting loan approval.
While understandable in the context of large-scale loans required for major capital investment projects, the same process should not be applied to farmers seeking short-term finance to help them deal with the immediate cashflow challenges caused by the ongoing drought.
In such instances, where the client has a long-term business relationship with the bank, there clearly needs to be a fast-track process where funding can be approved for draw-down in a matter of days and not months.
Beef: co-op ethos shining in tough times
Beef processors often lament the extent to which they are portrayed by farm organisations – and indeed this paper – as having little regard for farmers.
However, as we have witnessed over the past few weeks, the esteem in which they are held by the farming community is a reflection of their own actions.
The ethos of a privately owned company versus that of a co-op has probably never been more evident than in the past few weeks.
Teagasc: advisers stepping up to help farmers
The work of the Teagasc advisory service in recent weeks should be acknowledged. Advisers across the country have stepped up in helping farmers, both clients and non-clients. There is no doubt that farmers have relied heavily on the organisation not only in terms of providing technical advice but also facilitating discussion groups, allowing farmers come together and talk through their problems. The importance of providing this platform should be applauded at this highly stressful time.
Wellbeing: freak events cause stress and strain
There is no doubt that the drought conditions are putting severe stress on farmers, coming on the back of what was a very difficult spring. It is only natural that after such a prolonged period, self-doubt starts to creep in and decisions are questioned.
The situation many farmers find themselves in at present should not be confused with failure. The reality is that in the last six months we have had what in an Irish context are two freak and consecutive weather events which no one could have planned or indeed prepared for. It is important for rural communities to support farmers, across all enterprises.
At farm level, the first step to dealing with a potential winter fodder shortage is to carry out a fodder budget to determine the severity of the situation. We have a budget calculator on farmersjournal.ie. For many farms, the most viable route will be to bridge the fodder gap with concentrates. A 15-25% fodder deficit can be overcome by increasing meal feeding levels by 2-3kg per head per day. The option to move beef animals on to an ad-lib concentrate diet is definitely worth considering early in the winter. In most cases, concentrates will work out as a more cost-effective alternative to purchasing forage.
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