Last week’s grain prices drove home the reality of tillage farming in 2026 for farmers. There was a wet spring, a summer drought, and while there was a smooth harvest, crops lost potential and farmers had one thing to wait on – the final harvest prices.

With three co-ops announcing and merchants finalising their prices in recent days, the books are being examined. The prices announced are fairly reflective of the market. They’re much higher than returns originally calculated, but the input costs sky rocketed in the meantime. In summary, the sums aren’t good.

Grain prices are at about €40/t ahead of where budgets were made in late 2025 and early 2026, but nitrogen increased by about €150/t by spring time, while fuel prices soared. Over the past 12 months, fuel prices have increased by approximately 74%.

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Some farmers may have bought fuel and fertiliser before the hike, but many probably didn’t, and all would have had to refill the fuel tank amid several price increases.

Premium markets

Premium markets also took a hit. Malting-barley price declined, contracts declined, and distilling barley was not in demand. Gluten-free oats contracts decreased. High-value grains seemed a thing of the past this year, and there was a kick in the teeth for some as they are now being paid a higher price for rejected malting barley than barley that met malting-barley specifications.

It is almost inevitable, then, that tillage area will decline for the 2026/2027 season.

There is likely to be a move away from malting barley in 2027. Land leases will be hard to hold onto, and farmers will need to choose crops carefully.

Government support

In this week’s budget, the Government needs to support tillage.

It needs to return to its promise of a €67m payment for the sector; that’s an annual payment to get the sector out of trouble, and it needs to revisit the Food Vision for Tillage report.

Progressing the pilot scheme to pay tillage farms for sustainability, and to promote the use of Irish grain in animal feed, need to be ensured.

It is essential that the Government also funds the Straw Incorporation measure for all applicants in 2027.