Last week’s article on the performance of Newford Farm in 2016 raised some further questions readers wished to be answered. Many of these focused on the setup and financial performance of the herd. One question asked was who paid the farm manager’s salary and what is the division in input into Newford Farm between Dawn Meats and Teagasc?

Dawn Meats employs the farm manager and covers all costs of employment. Dawn Meats also covered capital costs to establish the farm (livestock and capital investment) while Teagasc covers land rental costs and provides technical advice.

The target financial performance of the farm is another question raised, with specific reference to covering labour and land rental costs. The farm is not in a position to cover full labour and land rental costs, which if assumed at €50,000 would amount to €833/ha. Before these figures, the farm generated a net margin of -€400/ha in 2016. It is important to note these figures do not include any premium and covers all borrowing costs.

However, covering both these costs was never a target of the project. The target financial performance, as publicised at last year’s open day, is to deliver a net margin of €520/ha by 2019 (€29,000) while establishing the production potential of a suckler-to-beef herd utilising first-cross cows from the dairy herd.

To achieve this, there will be a relentless focus on costs for 2017 and the duration of the programme. There is no direct payment with the exception of the Beef Data and Genomics payment of about €8,500. Another question asked is why additional land is being rented in 2017 when the farm is making a loss and what is the cost of this land to the project? The farm is losing 8ha (20ac) of land in 2017 in the Raheen Woods land block. The land that is being rented is 12.95ha or 32 acres and Teagasc is making this available to the project as with the other land in the Newford Farm.