Farmers are going through a horrendous period. The harsh conditions of the past few months are hitting all sectors and all regions. And for some, the struggle dates back to July 2017. It is clearly taking its toll on the farming community. Having attended a number of farmer events over the past few weeks, the financial, physical and mental stress is evident. Farmers are tired from battling on a range of fronts.
Dealing with the weather has undoubtedly been the biggest challenge and unfortunately it will take a lot more than a few dry days to repair the damage done. Rainfall levels in parts of the south hit approximately 180mm in April and some of these areas continue to be rained off either in terms of carrying out field work or getting access for grazing.
As Andy Doyle reports, due to poor ground conditions, most tillage farmers have seen the planting window come and go for traditional spring crops. Plans for beans have been abandoned while farmers hoping to plant early potatoes have seen the opportunity pass. Andy estimates that nationally, not much more than 30% of spring crops have been planted with the figure falling to just 10% in some of the worst affect areas. Just 20% of the potato crop is estimated to be in the ground at this stage.
Furthermore, the yield potential of crops planted in the last few days is uncertain due to the late sowing date – even with good growing conditions for the remainder of the year, the profitability of these crops will be questionable.
The only safety net may in fact be the price of straw next autumn as livestock farmers compete for what will undoubtedly be a reduced supply: every 4ha drop in spring planting equates to 100 fewer 4x4 bales.
Meanwhile on livestock farms, the late spring has caused a cashflow crunch. For dairy farmers, milk output and price is running well behind last year, while all livestock farmers have seen feed costs spiral.
There are now concerns that some farmers are struggling to get adequate funding to purchase fertiliser as co-op/merchant credit accounts reach their limit. Perhaps the most striking example of the financial pressure facing farmers has been the mood at the recent pedigree bull sales, where both demand and prices are significantly down on previous years.
The constant battle with Minister Creed has driven a wedge between farmers and the Department of Agriculture
Against this backdrop, it is no surprise that farmers’ appetites to continue to invest in the business has been reduced. We are seeing a number of livestock farmers that have been building up their business and stocking rates take the decision to pull back and build more flexibility into the system – it is a logical move, especially for those on marginal land. The need for flexibility in the system is one area that has perhaps been overlooked in the push to drive output in a bid to tackle reduced margins.
Frustration among farmers runs beyond the weather. The constant battle in recent months with Minister for Agriculture Michael Creed – most recently over the fodder scheme and going back to the tillage crisis fund – has driven a wedge between farmers and the Department of Agriculture. On both issues, the minister is seen as leading from behind.
The level of dissatisfaction was evident at the IFA/EU citizens dialogue in Kilkenny when, ironically, farmers expressed most anger towards the Department of Agriculture rather than the European Commission when discussions turned to red tape, inspections and delayed payments. It is not that farmers expect the minister to have all the solutions to all of their problems, but an acknowledgement that the problems exist would be a step in the right direction.
The credit crunch on farms presents a real opportunity for the minister to take a step in the right direction. In March, we saw the Government roll out its Brexit loan scheme of €300m at an interest rate of 4% or less – but it excludes farmers.
Continuing to stall the rollout of the low-interest agri-loan scheme at a time when farmers are coming out of the most costly winter/spring in over a decade will only reinforce opinions of a disconnect between the minister and the challenges on the ground. The blueprint for such a scheme has already been put in place through the successful rollout of the low-cost loan scheme in 2017.
Barriers preventing the rollout of the 2018 loan scheme should be identified and removed. There is a clear opportunity for Minister Creed to lead from the front on this issue.
MARTS: When a mart is struck off the
register, farmers should be told
More than 100 farmers have been left owed money by the collapse of Castleblayney Livestock Mart. \ Thomas HubertAs Thomas Hubert reports, more than 100 farmers have been left owed money by the collapse of Castleblayney Mart. The news will undoubtedly come as a shock to the farming community who trade through marts daily on the understanding that payment is guaranteed.
One of the key roles of the Property Services Regulatory Authority (PSRA) – the body responsible for licensing marts – is to ensure the marts’ client accounts are adequately funded to guarantee farmers’ payments. While the licence for Castleblayney expired in February 2017, it was allowed to continue to trade without any repercussions. One would expect that a key role of the PSRA would be to pursue marts that are no longer licensed yet continue to trade.
The information on sales is publicly available and with 98% of Irish marts licensed, identifying those breaching regulations should be relatively straightforward.
There clearly needs to be improved communication with farmers when marts are struck off the registered list. By allowing Castleblayney Mart to continue to trade, the PSRA not only failed farmers but also livestock marts by undermining one of the founding principles upon which they were established: security of payment.
TIMBER: Industry growth dependent on UK
\ Philip DoyleThe findings of the recent report from the Irish Timber Industry Development Forum (TIDF) on the implications of Brexit are stark. This report maintains that the sector “is uniquely exposed to Brexit, with almost 80% of its output and 100% of future growth dependent on ongoing access to the UK”.
With timber production projected to double to 8.1m m3 by 2035, this has major short-term and long-term implications, not just for timber processors but also for private forest owners, now mainly farmers. Most of these farmers combine forestry with agriculture, so they face massive challenges on both fronts.
While many commentators continue to dismiss the prospects of a land or sea border between the Republic of Ireland and the UK, the timber forum regards this thinking as a luxury and accepts that “future trading relationship will never be as seamless as the current arrangement”.
The report provides a number of solutions based on the Norway-Sweden model. While this model works well, it has taken years to develop to its present state and still results in increased delays in movement of goods, as well as adding to administrative and other costs.
At the launch of the report, Commissioner Hogan, John Murray and Fergal Leamy hoped common sense from the UK side would prevail but the well-researched document was prepared on the basis of hoping for the best but preparing for the worst.
CAP BUDGET: Time for member states to step up and protect farming
European Commissioner for Agriculture Phil HoganThe news on Wednesday that the European Commission is proposing further cuts to the CAP budget will anger farmers. The 5% being proposed of course ignores the impact of inflation on the real value of what farmers receive. It is now time for EU member states to step up to the plate and show their commitment to the European project by increasing the percentage of gross national income (GNI) contributed to the EU budget – a move that would provide adequate funding for any cuts to be reversed.
European Commissioner for Agriculture Phil Hogan has a lot of groundwork done in this regard and we understand over 20 member states are in agreement on the need to increase funding, including Ireland. The Government should be commended for taking the lead in this regard. It will be key that Irish officials continue in their efforts to bring more member states on board and that whatever increased funding is made available is targeted towards key policies, such as CAP. It is not tenable for the EU to continue to expect farmers to do more for less.
Farmers are going through a horrendous period. The harsh conditions of the past few months are hitting all sectors and all regions. And for some, the struggle dates back to July 2017. It is clearly taking its toll on the farming community. Having attended a number of farmer events over the past few weeks, the financial, physical and mental stress is evident. Farmers are tired from battling on a range of fronts.
Dealing with the weather has undoubtedly been the biggest challenge and unfortunately it will take a lot more than a few dry days to repair the damage done. Rainfall levels in parts of the south hit approximately 180mm in April and some of these areas continue to be rained off either in terms of carrying out field work or getting access for grazing.
As Andy Doyle reports, due to poor ground conditions, most tillage farmers have seen the planting window come and go for traditional spring crops. Plans for beans have been abandoned while farmers hoping to plant early potatoes have seen the opportunity pass. Andy estimates that nationally, not much more than 30% of spring crops have been planted with the figure falling to just 10% in some of the worst affect areas. Just 20% of the potato crop is estimated to be in the ground at this stage.
Furthermore, the yield potential of crops planted in the last few days is uncertain due to the late sowing date – even with good growing conditions for the remainder of the year, the profitability of these crops will be questionable.
The only safety net may in fact be the price of straw next autumn as livestock farmers compete for what will undoubtedly be a reduced supply: every 4ha drop in spring planting equates to 100 fewer 4x4 bales.
Meanwhile on livestock farms, the late spring has caused a cashflow crunch. For dairy farmers, milk output and price is running well behind last year, while all livestock farmers have seen feed costs spiral.
There are now concerns that some farmers are struggling to get adequate funding to purchase fertiliser as co-op/merchant credit accounts reach their limit. Perhaps the most striking example of the financial pressure facing farmers has been the mood at the recent pedigree bull sales, where both demand and prices are significantly down on previous years.
The constant battle with Minister Creed has driven a wedge between farmers and the Department of Agriculture
Against this backdrop, it is no surprise that farmers’ appetites to continue to invest in the business has been reduced. We are seeing a number of livestock farmers that have been building up their business and stocking rates take the decision to pull back and build more flexibility into the system – it is a logical move, especially for those on marginal land. The need for flexibility in the system is one area that has perhaps been overlooked in the push to drive output in a bid to tackle reduced margins.
Frustration among farmers runs beyond the weather. The constant battle in recent months with Minister for Agriculture Michael Creed – most recently over the fodder scheme and going back to the tillage crisis fund – has driven a wedge between farmers and the Department of Agriculture. On both issues, the minister is seen as leading from behind.
The level of dissatisfaction was evident at the IFA/EU citizens dialogue in Kilkenny when, ironically, farmers expressed most anger towards the Department of Agriculture rather than the European Commission when discussions turned to red tape, inspections and delayed payments. It is not that farmers expect the minister to have all the solutions to all of their problems, but an acknowledgement that the problems exist would be a step in the right direction.
The credit crunch on farms presents a real opportunity for the minister to take a step in the right direction. In March, we saw the Government roll out its Brexit loan scheme of €300m at an interest rate of 4% or less – but it excludes farmers.
Continuing to stall the rollout of the low-interest agri-loan scheme at a time when farmers are coming out of the most costly winter/spring in over a decade will only reinforce opinions of a disconnect between the minister and the challenges on the ground. The blueprint for such a scheme has already been put in place through the successful rollout of the low-cost loan scheme in 2017.
Barriers preventing the rollout of the 2018 loan scheme should be identified and removed. There is a clear opportunity for Minister Creed to lead from the front on this issue.
MARTS: When a mart is struck off the
register, farmers should be told
More than 100 farmers have been left owed money by the collapse of Castleblayney Livestock Mart. \ Thomas HubertAs Thomas Hubert reports, more than 100 farmers have been left owed money by the collapse of Castleblayney Mart. The news will undoubtedly come as a shock to the farming community who trade through marts daily on the understanding that payment is guaranteed.
One of the key roles of the Property Services Regulatory Authority (PSRA) – the body responsible for licensing marts – is to ensure the marts’ client accounts are adequately funded to guarantee farmers’ payments. While the licence for Castleblayney expired in February 2017, it was allowed to continue to trade without any repercussions. One would expect that a key role of the PSRA would be to pursue marts that are no longer licensed yet continue to trade.
The information on sales is publicly available and with 98% of Irish marts licensed, identifying those breaching regulations should be relatively straightforward.
There clearly needs to be improved communication with farmers when marts are struck off the registered list. By allowing Castleblayney Mart to continue to trade, the PSRA not only failed farmers but also livestock marts by undermining one of the founding principles upon which they were established: security of payment.
TIMBER: Industry growth dependent on UK
\ Philip DoyleThe findings of the recent report from the Irish Timber Industry Development Forum (TIDF) on the implications of Brexit are stark. This report maintains that the sector “is uniquely exposed to Brexit, with almost 80% of its output and 100% of future growth dependent on ongoing access to the UK”.
With timber production projected to double to 8.1m m3 by 2035, this has major short-term and long-term implications, not just for timber processors but also for private forest owners, now mainly farmers. Most of these farmers combine forestry with agriculture, so they face massive challenges on both fronts.
While many commentators continue to dismiss the prospects of a land or sea border between the Republic of Ireland and the UK, the timber forum regards this thinking as a luxury and accepts that “future trading relationship will never be as seamless as the current arrangement”.
The report provides a number of solutions based on the Norway-Sweden model. While this model works well, it has taken years to develop to its present state and still results in increased delays in movement of goods, as well as adding to administrative and other costs.
At the launch of the report, Commissioner Hogan, John Murray and Fergal Leamy hoped common sense from the UK side would prevail but the well-researched document was prepared on the basis of hoping for the best but preparing for the worst.
CAP BUDGET: Time for member states to step up and protect farming
European Commissioner for Agriculture Phil HoganThe news on Wednesday that the European Commission is proposing further cuts to the CAP budget will anger farmers. The 5% being proposed of course ignores the impact of inflation on the real value of what farmers receive. It is now time for EU member states to step up to the plate and show their commitment to the European project by increasing the percentage of gross national income (GNI) contributed to the EU budget – a move that would provide adequate funding for any cuts to be reversed.
European Commissioner for Agriculture Phil Hogan has a lot of groundwork done in this regard and we understand over 20 member states are in agreement on the need to increase funding, including Ireland. The Government should be commended for taking the lead in this regard. It will be key that Irish officials continue in their efforts to bring more member states on board and that whatever increased funding is made available is targeted towards key policies, such as CAP. It is not tenable for the EU to continue to expect farmers to do more for less.
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