Editorial: talented farmers key to the sector’s future

I was delighted to be able to sit on the judging panel for the 2019 FBD Young Farmer of the Year awards, run by Macra na Feirme.

Farming is no different to any other industry: its future success depends on its capacity to attract skilled talent into the sector.

All six finalists in the competition had completed at least a third-level qualification before embarking on full-time careers in farming. Some had worked outside of the sector before returning home with a very clear business plan on how they would develop their respective enterprises.

It is encouraging to see this enthusiasm is not limited to the dairy sector.

After studying teaching in England, Alan Doyle is forging a career for himself on his Carlow suckler and sheep farm, which includes three commonages. His focus is to incorporate the environmental aspects of his farming enterprise into a diversification strategy, which includes social farming.

Meanwhile, Edward Egan, a Roscommon man armed with a Level 7 degree in business management and finance, returned to the county and has established a successful agricultural contracting business focused on technology and customer service.

The entrepreneurial spirit of west Cork also shines through in Daniel Hickey. Having returned home with a Level 8 degree in agriculture, he, along with his family, has developed a very successful duck rearing and processing enterprise, supplying many of the leading multiples. The poultry business operates alongside a 90-cow dairy herd.

The young Clareman’s career journey impressed judges across all fronts, starting with the vision of his parents who, when he was aged just 19, gave him a 20% share in the business

The opportunities that the abolition of dairy quotas created for young farmers to develop viable business enterprises is also exemplified in Brendan Gorman from Kildare and Waterford’s Shane Fitzgerald. Both young men, with the support of their families, have built up highly successful dairy businesses.

Gorman, who initially studied horticulture, has developed what he describes as a small-scale dairy, beef and tillage farm into a business that will be milking 350 cows next year.

Meanwhile, equipped with a business and accounting degree, Fitzgerald is running a 200-cow unit while achieving a suitable work/life balance identified as one of the most important factors. Both men were well up to speed on managing their environmental impact and the importance of animal welfare.

In Kildare, Wagyu genetics were used in the breeding programme with market outlets developed for calves prior to them being born.

Against such stiff competition, Liam Hanrahan had to put in a strong performance to secure the FBD Young Farmer of the Year award.

The young Clareman’s career journey impressed judges across all fronts, starting with the vision of his parents who, when he was aged just 19, gave him a 20% share in the family business.

There is no doubt that Liam has rewarded them for their confidence in him and before returning home to the business he completed a Walsh Fellowship PhD.

He has put his skills to great use not only in terms of driving farm productivity but also in managing business affairs. Again we see another dairy farmer that is incredibly environmentally aware and has a solid customer base for his calves.

In what was a common thread across all candidates, Liam Hanrahan managed to strike a good balance between managing a successful business while maintaining a good connection with his local community. The young man is a fantastic ambassador for Irish farming.

Pigs rocketing in price, a recovery in dairy incomes and a continuing fall in fertiliser prices were the standout features at the annual Teagasc review and outlook conference on Tuesday.

In the beef and tillage sectors in 2019, a significant gap opened up between Irish and continental young bull prices, while winter barley growers saw an enormous drop of €750 in margin as grain prices fell by 25-30% compared with 2018, while straw prices collapsed. Winter wheat growers saw their margins drop by €550/ha. On cattle farms, the average loss before direct payments widened to €100 on cattle rearing farms and €68 on finishing farms.

The introduction of the BEAM scheme has prevented a larger reduction in income and a small increase in overall cattle incomes is expected for 2020, mainly on the back of small reductions in costs across a range of areas.

The sheep sector is in the middle of a sustained rise in international demand, driven mainly by China. Incomes are expected to rise next year with a lowland income before direct payments expected to go from €78 in 2019 to €118/ha for 2020.

Dairying continues to be the standout mainstream farm enterprise. Margins recovered in 2019 following the drought-induced high costs in 2018. Average net margin came in at just over €1,320/ha and this is forecast to increase to almost €1,500 in 2020. This will still be below the record level reached in 2017.

The other two enterprises dealt with were pigs and forestry. The pig sector is booming on the back of a catastrophic cull of 21m pigs in China as the epidemic of African swine fever (ASF) continues. The outlook is for even higher prices provided we succeed in keeping the disease out.

Average pig farm incomes for 2019 was put at €127,000, after a number of very poor years.

Forestry on the other hand has seen a sharp decline in timber prices due to lack of confidence in our biggest export market – the UK – as well as a glut of storm and bark beetle-affected timber originating in Central Europe.

The sense of despair witnessed on the streets in Dublin should come as no surprise. Teagasc figures this week reinforce the income challenges on suckler and beef farms.

When farmers were led to the gates of beef factories in the summer, the opportunity for a price increase in line with what was being suggested was not achievable. The only delivery was to create an overhang in the market.

However, farmers now have a solid basis from which to demand higher prices. As we have highlighted in recent weeks, markets have turned in the UK, across the EU and globally. Yet beef farmers continue to see their incomes hammered as factories fail to pass this back. This week, Phelim O’Neill reports on how Brazilian prices have soared 76c/kg in three weeks and are now almost on par with what Irish farmers are receiving.

Anger on the ground has been fuelled by the failure to have the beef taskforce established due to injunctions remaining in place – there is no doubt that with current market conditions, stalling any mechanism that will shine increased light on the market is playing into the hands of beef processors and costing farmers.

While there is clearly a need for action, the leaderless protests of Tuesday and Wednesday are high-risk. Genuine farmers must not allow legitimate issues to be hijacked. Without leadership, this is a real possibility. While it is positive that all farm organisations sat down around the same table, they need to present a clear plan of action to farmers. The first demand should be the introduction of a BEAM 2 scheme to support farmers that sold cattle since May.

As Shane Murphy reports, over 500 cattle were entered for the annual winter fair of commercial livestock organised by the Midland and Western Livestock Improvement Society last weekend.

The trade was exceptional with an average price of €4.70/kg for heifer weanlings and a top of €10,000 for a 330kg Belgian blue heifer calf.

It’s a good news story in an industry devoid of any positive sentiment. The winter fair is a remarkable success story, now in its 15th year and attracting entries from all over Ireland.

Set up with help from the Department of Agriculture in 1926, it has stood the test of time and has become one of the leading venues for pedigree sales. The committee deserves credit for steering the society in the right direction over the years and keeping farmers central to all decisions.