What impact will rising fertiliser prices have on your business? Typically, feed and fertiliser costs make up about 20% to 25% of the total costs (when own labour and rent is included) of spring calving dairy farms.

It is a significant cost and any fluctuations in prices can have a large effect on overall profit. Fertiliser prices are on the rise but what impact this will have on the 2021 cost structure when compared to last year all depends on the price and quantity of fertiliser purchased in 2020.

This isn’t intended to be a glib comment, but is a statement of fact. Despite the fact that fertiliser prices have risen, fertiliser is cheaper today than it was this time last year.

The Irish Farmers Journal edition of 15 January 2020 had urea fertiliser prices at between €340/t and €350/t while CAN was making between €240/t to €250/t.

Fertiliser prices quoted in last weeks’ Irish Farmers Journal were €10/t to €25/t cheaper than this. So when analysing the impact on fertiliser price increases on your business, it’s important to assess it based on what you paid for fertiliser last year.

Forward purchase

Many dairy farmers will forward purchase at least 50% to 60% of their total fertiliser requirement in early January, so what they pay has an important impact on annual fertiliser prices.

Best policy is to shop around as there is price discrepancy between merchants and this is as a result of timing of purchases. Those that purchased product last autumn when prices were lower will be able to sell it cheaper now than those who purchased recently.

The other important thing to consider is to reduce fertiliser usage as a means of reducing fertiliser costs. As I see it, there is only one way to achieve this and that is to apply slightly less in each application.

So instead of spreading 27 units/acre after each grazing, spread 22 units/acre which is a 20% reduction and which should have a minimal enough effect on grass growth.

The same can be done for silage ground. Instead of spreading the traditional 100 units/acre of nitrogen on silage ground, consider applying 80 units/acre which is another 20% reduction and one which shouldn’t have too much of an impact on total grass growth.

Some farmers will split the nitrogen application for silage ground in two, to try and maximise nitrogen uptake.