The costs of making a round bale of silage is set to increase by €1.20 per bale as the impact of the war in Iran kicks in.

There was huge volatility in the price of oil this week, with Brent crude oil surging to over $116/barrel on Monday, before falling back to just over $90/barrel on Wednesday.

These prices are up over 50% compared to the price of oil in the six months prior to February, when the US started to prepare for the attack on Iran.

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For farmers and contractors, the effect has been almost immediate – with green diesel prices up from 95c/l to over €1.45/l since the conflict began.

If these prices remain for the silage season, it is set to increase the cost of making silage. For a typical crop, the increased cost of diesel is set to add 49c/bale to baling and wrapping, excluding the cost of wrap.

Mowing and raking is set to increase by another 54c/bale, meaning the increased diesel costs for a round bale comes to €1.03/bale, excluding the cost of tedding grass and drawing bales.

Silage wrap

In terms of the cost of plastic wrap, these are heavily linked to the price of oil.

However, industry sources say that 50% of the wrap to be used in Ireland this year has already been manufactured at the lower prices.

It is expected that the price of wrap will go up by €4.50/roll, which will add 16c/bale. In total, costs will increase by €1.20/bale.