The obvious reaction to the record high prices for energy, fertiliser and concentrates is to use less, but this could have long-term implications for your business and may not be the right approach in every circumstance.
“I’m saving money today, but is there an implication of that,” asked CAFRE business technologist Michael Calvert during an event held on the farm of Stephen Maguire outside Maguiresbridge in Co Fermanagh last Wednesday evening.
The Maguire farm was among four farms across NI that hosted CAFRE events last week about managing rising costs on beef and sheep farms. Despite dire warnings of a fodder crisis this winter, across the four locations, attendance was surprisingly low, with a little over 220 farmers turning up.
It would seem that post COVID-19, many have gotten out of the habit of going to farm walks. For those that did attend, they were hit with lots of information.
Cashflow
Distilling down the messages from the Maguire farm walk, Michael Calvert suggested that managing cashflow will be key over the next 12 months.
He said it might be wise to put off planned investments in buildings or equipment until prices stabilise, and to make sure that feed is targeted at stock that will perform.
But he warned that saving money on fertiliser this year could lead to higher costs next winter. In particular, he outlined an example where a farm taking two cuts off 25ac reduced fertiliser use by 30%, thereby saving £1,150 (fertiliser at £600/t).
With less fertiliser, yield is down 20%. If 70t of silage is bought next winter (at £35/t) to replace this reduced crop, it will cost £2,450. If 20t of concentrate is used to make up the feed deficit, it is a cost that could well be above £8,000.
Cut livestock
The logical alternative is to keep less livestock next winter and avoid these high costs. But that might be the wrong decision for your business, and at current output prices, there is a strong argument to suggest that beef farmers who keep output up will be financially rewarded.
To illustrate the point, CAFRE senior beef and sheep adviser Darryl Boyd used the example of the Maguire farm, where approximately 130kg N (around four bags per acre) is normally used to grow just over 10t of grass dry matter per hectare (DM/ha).
He said that Stephen could cut this back to 50kg N/ha (around 1.5 bags per acre), which would save him £180/ha in fertiliser costs. But he is likely to grow only 6t of grass DM/ha.
This extra 4t DM could potentially support an additional 386kg of liveweight gain.
Assuming 52% kill-out and a very conservative beef price of 400p/kg, it is lost output of over £800.
“You get paid for kilos of beef,” said Boyd, although he pointed out that his figures rely on good grass utilisation, which ultimately starts with rotational grazing, not set stocking.
Silage quality has never been more important
With grass for first-cut silage approaching maturity, farmers should regularly walk their swards, suggested CAFRE adviser, Gareth Beacom.
“At the price concentrate is likely to be this winter, silage quality has never been more important. Swards can change very quickly at this time of year. D-value can drop 1% every two to three days,” he said.
To highlight the point, Beacom compared two round bales of silage, one with a crude protein and ME content of 10.5. The second bale contained silage at 12.6% protein with an ME of 11.5MJ. When compared against a barley/soya mix, the first bale has a value of £49. The second bale is valued at £55.
Surplus grass on the grazing platform on the Maguire farm will be taken out as bales when conditions allow.
“The calculation is done using last winter’s feed prices, so the value of these bales is likely to increase. There is a big difference between good and average-quality silage. Silage is your cheapest form of protein and energy this winter,” said Beacom.
On the Maguire farm, he estimates that total costs for first-cut silage in the pit will be around £252 per acre. That includes an opportunist land value of £150/ac (the land could be set out for this amount), divided across three cuts.
Assuming a first-cut of 9t per acre, it works out at a cost of £28/t.
Second cut
Looking ahead to second cut and any further fertiliser applications to grazing, Beacom advised farmers not to take any risks, and avoid extremes of weather (too wet or too dry).
The same advice holds for slurry applications, and if we assume average cattle slurry has a NPK content of 9:11:20, then 1,000 gallons have a fertiliser value around £26.
“We have got to start treating slurry as if it is a chemical fertiliser,” suggested Beacom.
To ensure any NPK applied is fully utilised in the soil, it is vital to have soil pH of at least 6.
“There is no excuse not to have a soil analysis – pH is vitally important,” said Beacom.
Not a year to carry passenger animals
Once breeding is complete this summer, farmers should turn their thoughts to getting cows scanned and pulling out those animals that will not be retained over high cost winter months.
“Cull cows are a great trade. It is a good opportunity to rejuvenate your herd,” suggested CAFRE adviser Gareth Beacom.
Among a number of calculations presented at the CAFRE event was the impact of the rising price of red diesel on silage harvesting costs.
The amount of diesel burned will depend on the equipment used, and could range from 10l per acre up to 30l per acre. Assuming an average of 20l per acre, priced at 98p per litre, the diesel will cost around £19.60, which is up from a figure of approximately £8.40 in 2021.
Little and often approach to fertiliser
In 2019, Stephen Maguire dispersed his 60-cow suckler herd to concentrate on a calf rearing enterprise as part of the ABP Blade farming programme, as well as contract rearing dairy heifers and finishing dairy-bred beef.
At present, there are four batches of cattle grazing 50ac split into paddocks of around 2ac. The grazing area is stocked at 2.3 livestock units per hectare, with the aim of grazing paddocks for three days in a 21-day rotation. Stephen is a participant in the CAFRE Technology Demonstration Farm project, specialising in beef grassland management.
His advice for farmers thinking of improving their grassland management is to rotationally graze their livestock.
“I started by splitting fields in two. There was a bit of trial and error, and gradually over time, I became more confident. Persevere with it – you will financially reap the rewards. It is phenomenal the stock you can carry,” said Stephen.
In 2021, he grew 10.1t of grass DM across the grazing platform and was able to take off 150 bales as surplus. Just 106 units of N was sown (one bag of urea and 2.5 bags per acre of 24:4:4). “I spread little and often – 0.5 bags per acre at a time unless growth is high, when I might skip one sowing,” said Stephen.
Time to make a start with clover
High fertiliser prices have brought a renewed interest in clover, but it requires careful management to get it established and only in its second year is it able to fix nitrogen, maintained CAFRE farm director Dr Steven Johnston.
“You are not going to make a clover revolution this year, but you could make a start,” he suggested.
Ideally, clover should be sown by mid-July into a fine, firm seedbed.
“Clover is mustard seed size, so you can’t bury it. Roll before you sow and roll again. You should be able to ride a bicycle over the field,” suggested Johnston.
He said that soil pH should be around 6.3 to 6.5, and if the soil is low in phosphate and potash, this should be applied.
Whether sowing out after ploughing or stitching into an existing sward, it is important to get weeds under control beforehand.
“Once the clover starts to come through, the sward should be tightly grazed. I would have no issue putting on some nitrogen. It is the grass that kills the clover, not the nitrogen.
“Don’t carry heavy grass into the winter. And if you intend on doing two big cuts of silage, forget about it,” advised Johnston.
Read more
Farmer Writes: planning ahead for the next generation
Don’t derive comfort in fertiliser sales stats
The obvious reaction to the record high prices for energy, fertiliser and concentrates is to use less, but this could have long-term implications for your business and may not be the right approach in every circumstance.
“I’m saving money today, but is there an implication of that,” asked CAFRE business technologist Michael Calvert during an event held on the farm of Stephen Maguire outside Maguiresbridge in Co Fermanagh last Wednesday evening.
The Maguire farm was among four farms across NI that hosted CAFRE events last week about managing rising costs on beef and sheep farms. Despite dire warnings of a fodder crisis this winter, across the four locations, attendance was surprisingly low, with a little over 220 farmers turning up.
It would seem that post COVID-19, many have gotten out of the habit of going to farm walks. For those that did attend, they were hit with lots of information.
Cashflow
Distilling down the messages from the Maguire farm walk, Michael Calvert suggested that managing cashflow will be key over the next 12 months.
He said it might be wise to put off planned investments in buildings or equipment until prices stabilise, and to make sure that feed is targeted at stock that will perform.
But he warned that saving money on fertiliser this year could lead to higher costs next winter. In particular, he outlined an example where a farm taking two cuts off 25ac reduced fertiliser use by 30%, thereby saving £1,150 (fertiliser at £600/t).
With less fertiliser, yield is down 20%. If 70t of silage is bought next winter (at £35/t) to replace this reduced crop, it will cost £2,450. If 20t of concentrate is used to make up the feed deficit, it is a cost that could well be above £8,000.
Cut livestock
The logical alternative is to keep less livestock next winter and avoid these high costs. But that might be the wrong decision for your business, and at current output prices, there is a strong argument to suggest that beef farmers who keep output up will be financially rewarded.
To illustrate the point, CAFRE senior beef and sheep adviser Darryl Boyd used the example of the Maguire farm, where approximately 130kg N (around four bags per acre) is normally used to grow just over 10t of grass dry matter per hectare (DM/ha).
He said that Stephen could cut this back to 50kg N/ha (around 1.5 bags per acre), which would save him £180/ha in fertiliser costs. But he is likely to grow only 6t of grass DM/ha.
This extra 4t DM could potentially support an additional 386kg of liveweight gain.
Assuming 52% kill-out and a very conservative beef price of 400p/kg, it is lost output of over £800.
“You get paid for kilos of beef,” said Boyd, although he pointed out that his figures rely on good grass utilisation, which ultimately starts with rotational grazing, not set stocking.
Silage quality has never been more important
With grass for first-cut silage approaching maturity, farmers should regularly walk their swards, suggested CAFRE adviser, Gareth Beacom.
“At the price concentrate is likely to be this winter, silage quality has never been more important. Swards can change very quickly at this time of year. D-value can drop 1% every two to three days,” he said.
To highlight the point, Beacom compared two round bales of silage, one with a crude protein and ME content of 10.5. The second bale contained silage at 12.6% protein with an ME of 11.5MJ. When compared against a barley/soya mix, the first bale has a value of £49. The second bale is valued at £55.
Surplus grass on the grazing platform on the Maguire farm will be taken out as bales when conditions allow.
“The calculation is done using last winter’s feed prices, so the value of these bales is likely to increase. There is a big difference between good and average-quality silage. Silage is your cheapest form of protein and energy this winter,” said Beacom.
On the Maguire farm, he estimates that total costs for first-cut silage in the pit will be around £252 per acre. That includes an opportunist land value of £150/ac (the land could be set out for this amount), divided across three cuts.
Assuming a first-cut of 9t per acre, it works out at a cost of £28/t.
Second cut
Looking ahead to second cut and any further fertiliser applications to grazing, Beacom advised farmers not to take any risks, and avoid extremes of weather (too wet or too dry).
The same advice holds for slurry applications, and if we assume average cattle slurry has a NPK content of 9:11:20, then 1,000 gallons have a fertiliser value around £26.
“We have got to start treating slurry as if it is a chemical fertiliser,” suggested Beacom.
To ensure any NPK applied is fully utilised in the soil, it is vital to have soil pH of at least 6.
“There is no excuse not to have a soil analysis – pH is vitally important,” said Beacom.
Not a year to carry passenger animals
Once breeding is complete this summer, farmers should turn their thoughts to getting cows scanned and pulling out those animals that will not be retained over high cost winter months.
“Cull cows are a great trade. It is a good opportunity to rejuvenate your herd,” suggested CAFRE adviser Gareth Beacom.
Among a number of calculations presented at the CAFRE event was the impact of the rising price of red diesel on silage harvesting costs.
The amount of diesel burned will depend on the equipment used, and could range from 10l per acre up to 30l per acre. Assuming an average of 20l per acre, priced at 98p per litre, the diesel will cost around £19.60, which is up from a figure of approximately £8.40 in 2021.
Little and often approach to fertiliser
In 2019, Stephen Maguire dispersed his 60-cow suckler herd to concentrate on a calf rearing enterprise as part of the ABP Blade farming programme, as well as contract rearing dairy heifers and finishing dairy-bred beef.
At present, there are four batches of cattle grazing 50ac split into paddocks of around 2ac. The grazing area is stocked at 2.3 livestock units per hectare, with the aim of grazing paddocks for three days in a 21-day rotation. Stephen is a participant in the CAFRE Technology Demonstration Farm project, specialising in beef grassland management.
His advice for farmers thinking of improving their grassland management is to rotationally graze their livestock.
“I started by splitting fields in two. There was a bit of trial and error, and gradually over time, I became more confident. Persevere with it – you will financially reap the rewards. It is phenomenal the stock you can carry,” said Stephen.
In 2021, he grew 10.1t of grass DM across the grazing platform and was able to take off 150 bales as surplus. Just 106 units of N was sown (one bag of urea and 2.5 bags per acre of 24:4:4). “I spread little and often – 0.5 bags per acre at a time unless growth is high, when I might skip one sowing,” said Stephen.
Time to make a start with clover
High fertiliser prices have brought a renewed interest in clover, but it requires careful management to get it established and only in its second year is it able to fix nitrogen, maintained CAFRE farm director Dr Steven Johnston.
“You are not going to make a clover revolution this year, but you could make a start,” he suggested.
Ideally, clover should be sown by mid-July into a fine, firm seedbed.
“Clover is mustard seed size, so you can’t bury it. Roll before you sow and roll again. You should be able to ride a bicycle over the field,” suggested Johnston.
He said that soil pH should be around 6.3 to 6.5, and if the soil is low in phosphate and potash, this should be applied.
Whether sowing out after ploughing or stitching into an existing sward, it is important to get weeds under control beforehand.
“Once the clover starts to come through, the sward should be tightly grazed. I would have no issue putting on some nitrogen. It is the grass that kills the clover, not the nitrogen.
“Don’t carry heavy grass into the winter. And if you intend on doing two big cuts of silage, forget about it,” advised Johnston.
Read more
Farmer Writes: planning ahead for the next generation
Don’t derive comfort in fertiliser sales stats
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