Farmers’ thoughts and intentions turn to fertiliser and, more particularly, nitrogen at this time of the year. The stretch in daylight, the slight increase in temperatures and the arrival of newborn animals pushes farmers into planning feed for the year ahead. The Kiwis class nitrogen as a feed and they are not far wrong. It’s the growth accelerator when conditions are right that is even more important in an Irish situation.
Irish farmers over the last five years have significantly reduced nitrogen application, sometimes to the detriment of feed stocks on-farm. Five years ago, over 400,000t of nitrogen was used and for the last two years that’s down to average 295,000t. That’s below the 300,000t stretch 2030 target the industry set in line with reducing agricultural emissions and establishing other nitrogen providers for grass.
Some farmers have got the balance wrong, or have been advised poorly at farm level and ended up having to replace a potentially home-grown forage with a purchased concentrate. That additional feed costs up to three or four times the price to the farmer, compared with what they could produce it for themselves. That’s bad business if you can grow the forage. In many cases, it can be bad for the environment also.
Something farmers have less control over is the global fertiliser trading business. The fertiliser industry in Ireland was quite literally turned on its head since the start of the Russian invasion of Ukraine over three years ago now.
Back then, Russia was supplying over 40% of the nitrogen that was coming into Ireland. Realistically, it was even more if you counted the Russian-owned European entities that were backed by Russian oligarchs. That source of nitrogen is not an option at the moment, given the European sanctions.
The other knock-on effect was the increase in the price of gas. Four years ago in December and January, gas was trading at €10 to €12 per megawatt hour and now more typically it’s €50 per megawatt hour in the winter, largely because Russian gas isn’t in the mix. This means European production (particularly German production of fertiliser) is very expensive, relative to some other sources globally.
I understand over 85% of Ireland’s urea is coming from Egypt and Algeria right now. Interestingly, farmers in North Africa are completely dependent on imports of feed from places like South America, and breeding and fattening cattle from countries like Ireland.
There isn’t that much farmers can do about that global fertiliser availability, the trading dynamics or the increased cost. As importers, energy prices and currency exchanges are largely outside farmer control. However, convincing farmers they need to grow feed is not helped by our own policy and administration. As Aidan Brennan and Darren Carty point out in the Focus supplement this week, a lot of farmers don’t know what nitrogen or fertiliser they can use on-farm for 2025.
The development of the fertiliser register means farmers take no risks. Only the bare minimum is held in stock on farms. As we approach the end of February, how decisions have not been taken by the Department to calculate and communicate to farmers the final 2024 stocking rate numbers seems ridiculous.
Allowances for crude protein changes in feed and young stock numbers didn’t happen in November or December last year. You can’t help but wonder is it a decision falling between two stools. Should the Department of Agriculture, Food and the Marine have responsibility instead of the Department of Housing, Local Government and Heritage?
The other unknown for farmers is will the goalposts change as we go through the year? Last July, the goalposts changed, and while late in the year, it was helpful to maximise autumn growth.
At the very least, farmers need clarity on what fertiliser they can spread early in the year.
That’s important for the economic, environmental and mental stability of farmers. Anyone working with or for farmers should know what it is to face the mental anguish of dwindling feed stocks in summer or winter, with hungry animals looking at you.
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