At the beginning of the project, the aim was to be able to cover all costs including variable costs, fixed costs, land rent, labour and loan interest.

Unfortunately in 2018, the farm fell short of doing this due to a number of reasons. Firstly, the farm is still in development.

Cow numbers are slowly building back to 100 after an infertile bull caused a high culling rate at the end of the 2017 breeding season. This meant less births in 2018 and a negative inventory change.

Storm Emma and drought conditions during the summer of 2018 increased feed and bedding costs to the tune of €30,000 on the farm.

Delayed turnout for maiden heifers also meant that they were lighter at sale and hence back €100-€150/head of what they were budgeted to sell at, which meant a decrease in sales of €4,000-€5,000.

With sheds packed to capacity in spring 2018 during the storm conditions, there was a higher number of vet call-outs and hence a higher vet bill at the end of the year.

So what will change? Table 3 outlines some of the areas which are being looked at for cost savings in 2019. Feed, contractor and vet costs are all areas where already savings have been made in 2019.

Straw usage is also a lot lower and there are 40 bales left over from 2018 purchases. Purchased forage should be eliminated from a load of hay purchased for sheep.

2018 analysis

Stocking rate, output per hectare and output per livestock unit are all on target with the farm plan. Costs need to be brought back in line and this has already began in 2019.

A gross margin of €551 is well short of what was targeted. In scenario one in the Table 2, we take a look at what the system might return if it was a typical farm with 50% of the land rented, 50% of the capital borrowed and including a full labour charge to run the farm.

In this scenario, the SFP of the farm has been left in. This leaves a total profit of €1,437 when all costs have been paid. In 2019, BEEP and BEAM will contribute a further €15,600 to the bottom line on Tullamore Farm. Increasing ewe numbers is also being looked at as part of the plan to increase sales and reduce costs.