Tillage farmers probably couldn’t have had a worse 12 months than they have experienced in the last year.

Since July 2023, everything that could go against the sector has probably materialised. The most recent global price drop in grain couldn’t come at a worse time as the dynamics of global supply and demand pressurise potential grain prices to near breakeven for the best of Irish grain growers.

As we go to print, trailer loads of the best grain is making its way into co-ops and merchants’ yards. Farmers already know, despite the fact the price hasn’t been set yet, that the margin will be miniscule.

The market impact is no different to any of the other sectors when bumper crop yields in other parts of the world descend on a market at pretty much the same time of the year.

The difference between the Irish milk and meat sectors with the Irish grain sector is that in round numbers we import three times as much grain or feed as we produce in the country. In dairy and beef, we export close to 90% of what is produced on the island, and any imports pale into insignificance.

The changing face of tillage in Ireland is real, and will be further challenged unless urgent, strong, clear actions are implemented. Across the water in the UK, many of the same land use challenges exist.

The food or fuel debate on land use rages there also. Similar to Ireland, the agri sectors have evolved in England – dairy and poultry production have grown, and vegetable production has shrunk alarmingly. Farmer margins in the horticulture sector have dropped, and with it the producers go out of business.

Predictions

The predictions are for much more change. Natural England (the non-departmental public body sponsored by the UK department of the environment) acknowledged in a report published last week that hitting all the environmental targets set by the UK government could slash food production in the UK by 25%.

Like Ireland, food, the environment and energy (solar) are on a collision course, and the three desires can’t all survive and thrive. An interesting aside related to our own recent planning permission articles is that the UK Labour government this week proposed to drop a clause in planning guidelines that gives planning authorities a responsibility to consider food security when approving applications.

So the Irish tillage sector has a multi-pronged attack on its hands – land use and good productive land leaving the sector for energy production.

This week alone, almost 1,000 acres passed planning approval for large-scale solar farms. Crop margins in 2024 are and will be very tight. More acres under the combine won’t fix this problem.

Current policy is making rules and regulations more important and stringent than ever – the nitrates derogation debacle is just one example of forcing other farm sectors to move into land they don’t need for all the wrong reasons.

Difficult weather made crop choice more difficult and limited. Imports from around the world produced under different rules effectively undermine the value of home-produced grain. Current import arrangements need to be addressed. Can we have a biofuel utilisation policy that would kick in when prices are low?

Irish growers have few if any margin insurance tools, aside from an option on forward pricing, to allow growers offset some of the price and margin risk. They need more tools.

New season

As the grain rolls, the new cropping season starts. Oilseed rape is being planted this week. Growers have to make decisions.

If we want growers to continue to do what they do, then we need a concerted industry effort and action led by the Department.

We need immediate and strong implementation of the Food Vision proposals – the core of this is a support payment. We need real financial support of at least €200/acre for those farmers who for the second year in a row, are going to struggle to break even.

Any discussion on either of these seems to have faded with the summer sun. We need innovation and alternative options on energy production from productive farmland.

Setting solar panels in concrete on productive farmland for 40 years can’t be the one and only solution, especially when we see other European countries banning it outright. Unless we see real action, don’t be surprised to see the tillage sector go the same way the horticulture sector in Ireland and the UK has gone.