Bad prices seals bad year for tillage farmers in Laois and other counties

As the harvest is winding down and the new sowing season is already underway, tillage farmers in Laois and elsewhere are reflecting on what looked set to be a make-or-break summer for many.

Months of bad weather going back to the autumn of 2023 extended into the spring of this year. Combined with falling prices farmers were facing a perfect storm of elements which had many staring into the abyss.

Irish Grain Growers Association Chairman Bobby Miller was among those to sound the alarm bells this spring late into the sowing season.

The Laois man told the Leinster Express / Laios Live in April that he and other growers were in dire straits and all tillage farmers were gambling on a fine summer just to break even.

Warnings from himself and other farm groups including the IFA were not ignored. Minister for Agriculture Charlie McConalogue made the trip to Ballybrittas to hear first-hand about short-term difficulties but also the long-term hopes tillage farmers have.

With all but beans left to harvest, Mr Miller spoke again  about what the year had been like since the dark days of what was a wet and stormy spring.

He starts his assessment of the year by going back to 2023 when sowing conditions for winter barley and wheat were not conducive to a good harvest.

He said the weather did not improve and continued  to mean a late spring sowing season meaning it was mid to late April before farmers were able to sow crops.

Fortunately the weather turned for the better from April onwards which led to better growing conditions. However, other factors have left growers at best in a break even situation.

“The season didn't turn out too bad for spring crops given the sowing and harvesting dates. 

“The yield is ok and above our expectations but, having said that it is below the five-year average.

“There is contentment for the time they were sown that the yields were still above average,” he said.

 There had been fears that quality would suffer due to the bad year. However, standards did not decline.

“The quality was good,” he said.

He said this is particularly important for Laois growers as malting barley is a key crop in the county. 

He adds that the quality of straw this year was also good but the quantity was below expectations especially given that demand is very high.

He says the 'half-decent' weather around harvest compared to 2023 gave farmers a good opportunity to take crops from the fields.

 Mr Miller also spoke about how the outcome was worse for winter growers who harvested in July this year.

“If you take winter barley in the midlands the yield was 3 tonne to the acre where we would have expected 3.7 tonne to the acre so the yield was well back,” he said.  

Another downside to the year which farmers feared might cause a negative impact was prices. Grain prices have fallen during the summer 

“From the harvest of 2022 grain prices are  back 35-40% and the cost of production has not reflected. So it will not be a good year for tillage farmers,” he said.

Mr Miller said 2022 is used as a benchmark because grain prices rose substantially that year due to the conflict in Ukraine. 

He said prices paid to Irish farmers are dictated by what is a complex world market for the produce. He said the price is not helped by Russian grain being sold cheaply around the globe.

The number of tillage farmers has been falling in recent years and there were fears that the  2023/4 season would drive more farmers out of the sector.

 Mr Miller said it is too early to say if this will happen   as the new growing season has already started and there are factors such as the nitrate directive which impact land availability which are out of the control of growers. Regardless, he says new growers are needed.

“We are finding it very hard to attract in new farmers into the sector,” he said.

He said existing and potential tillage farmers will be looking with anticipation on the Budget as he said it will show if the Government and Minister for Agriculture are committed to delivering on the  Report of the Food Vision Tillage Group.

It recommended that up to €60 million a year be invested in the tillage sector to attract more farmers into the sector.

Mr Miller and other members of the Irish Grain Growers had a stand at  the National Ploughing Championships in Ratheniska on the land owned by the Carter family who also happen to be in tillage.

The growers met in person with the Tánaiste Micheál Martin, Minister for Agriculture Charlie McConalogue and the two Ministers for State Pippa Hackett and Martin Heydon. Mr Miller met the Taoiseach Simon Harris in the run up to the championships.

The Government  politicians were left in no doubt about the need to invest in tillage in Laois and other counties.

  The farmers believe that the Budget will be the litmus  test about the need to invest to deliver on the Food Vision  plan.

“They are all getting the same message,” he said.

He said the Food Vision plan recommends a €60 million investment in tillage over a number of years. 

A specific area for the Government to deliver on is a promise made by Minister McConalogue in spring.

Support payments worth €14.3 million to the tillage sector for the bad 2023 season commenced in January 2024.

 As the bad weather  continued, the Minister for Agriculture at the Fianna Fáil Ard Fheis in April said   that he was  committing to deliver €100/ha to all farmers that plant field crops in 2024.

This received a mixed welcome at the time and, as yet, no payment mechanism has materialised.

Mr Miller said the money, which would total €30 million has not been paid.

“We are expecting something in the Budget about it. It has not been confirmed,” he said.

 Mr Miller added there was a bigger take up of existing support schemes in 2023 than 2024.

He believed that  the support being requested and promised may end up coming from unspent  funding this year.

  Reflecting overall on 2024 and its impact on incomes, Mr Miller said the picture is very mixed.

“Some will get on ok and others will be hit. It's a mixed bag,” he said.

He said spring sowing farmers will survive better than autumn and winter crop growers.