With trading restrictions on livestock markets, the disruption to the live sales will see some farmers carrying additional cattle over the spring period.
As a result of fewer cattle sales, there will be major cash flow pressures on farms across the country. Finding additional grazing ground will also be an issue.
Movement to direct slaughter is still permitted in the current climate, but there is little clarity on prices for prime animals, while demand for cows and out of spec animals has collapsed.
Farm-to-farm sales are still permitted. But reaching an agreement on price and sale weight, plus ensuring a secure payment transaction, will make some farmers reluctant to go down this route.
Hopefully, the announcement that marts can now offer weighing and brokerage facilities will alleviate these worries.
Farmers are in unprecedented territory and there are several tough decisions to be made this spring.
As with any decision making, consider your options and what the knock-on consequences will be further down the line. Outlined are some issues that are likely to affect suckler farmers in the coming months.
Do up a simple cash flow plan
Cash is king and where farmers do not have sufficient working capital, problems can quickly spiral out of control.
So plan ahead, talk to your bank if you are unable to sell livestock and complete a cash flow plan for the farm to cover the next six months.
Starting point
Start off with the opening bank balance on 1 April. Factor in any guaranteed monthly income. After this, work out what the main monthly expenses will be.
You should know your recurring expenses.
For example, add up the usual monthly direct debits, standing orders, merchant credit, bank repayments and drawings for the household.
Expenses
Next, work out the main purchases over the coming months and when payment is required. For example, how much fertiliser will be purchased in April and when is payment due?
The same goes for concentrate, veterinary medicine, diesel and contractor bills. Repeat this on a month-by-month basis.
Tally up the outgoings for April and deduct from the opening bank balance. The net balance should be used as the opening balance for May, before deducting the specific monthly costs.
As with any decision making, consider your options and what the knock-on consequences will be further down the line
Can cash reserves cover these monthly expenses, with or without an overdraft facility? If not, then action needs to be taken to generate income. This could be through selling livestock or surplus stock, off-farm employment, machinery sales or extending the overdraft limit.
The point of the exercise is to know where the financial pinch points are for the farm and take appropriate action in advance. Keep updating the cash flow plan every couple of weeks to stay on top of farm finances.
Have you enough ground to carry additional livestock?
If you have to carry additional cattle for a few months, do you have sufficient land available to keep them?
Consider your options carefully. Identify the high-priority animals, such as spring-calving cows and calves.
Give these animals first preference at grass. Herd replacements come next, then grazing stores. Options to increase grazing ground include:
Renting ground to carry stock for a short-term period. While this will come at a cost, it can alleviate grazing pressure, especially if there is a major downturn in weather conditions. Increasing fertiliser rates to maximise grass growth. But, be mindful that while grass generally responds to additional nitrogen, higher fertiliser applications should be targeted to reseeded swards, or those with high levels of ryegrass. Applying 20 to 25 units of nitrogen/ac every third week will boost grass growth through the period of peak growth, from April to June. For best results, use a fertiliser with added sulphur, as well as applying an NPK product.Reducing the acreage of first-cut silage will provide additional grazing ground. To make up any deficit in silage reserves, aim for a bigger second and third cut if necessary. Alternatively, link up with local farmers carrying lower stocking rates and discuss the possibility of purchasing silage as a standing crop, bales or ensiled in the clamp.Dry off summer and autumn cows and hold inside
Another way to free up grazing ground for higher priority stock is to hold lower priority cattle indoors through the spring period.
There is still plenty of fodder around the country that can be utilised by animals such as dry cows. On farms operating summer and early autumn-calving cows, these animals could be dried off now.
As processors are working to a tight spec on carcase weight, do not let these cattle go overweight, as this limits sale options
If grazing ground is limited, dry cows could remain housed until late spring or after first-cut silage has been harvested.
Alternatively, to keep cows fit, identify one paddock as a sacrifice field. Keep the dry cows in this field and feed silage in a ring feeder or trailer.
Where farmers are struggling to sell forward stores and there is no option to graze these cattle, it may be an option to intensively finish these animals over an 80 to 100 day period, provided the sums add up.
Ideally, these cattle should be within 100kg from their target finishing weight. As processors are working to a tight spec on carcase weight, do not let these cattle go overweight, as this limits sale options.
Opt for a high barley and maize ration to get animals to lay down fat cover. Keep protein levels to 13% and include a product such as beet pulp. Also, make sure cattle have access to silage or straw and fresh water daily.
Have cattle in saleable condition
Although your normal sale plans may be disrupted, it is important to keep animals in a saleable condition. This will maximise the sale value of cattle when you do find a buyer.
Consider your sale options for summer and autumn-born male calves. For buyers looking for cattle to graze over the summer, steers will be easier to offload, compared to calves that have not been castrated.
Read more
What should I get for my cattle when selling privately?
Tullamore Farm: coping through coronavirus without student help
With trading restrictions on livestock markets, the disruption to the live sales will see some farmers carrying additional cattle over the spring period.
As a result of fewer cattle sales, there will be major cash flow pressures on farms across the country. Finding additional grazing ground will also be an issue.
Movement to direct slaughter is still permitted in the current climate, but there is little clarity on prices for prime animals, while demand for cows and out of spec animals has collapsed.
Farm-to-farm sales are still permitted. But reaching an agreement on price and sale weight, plus ensuring a secure payment transaction, will make some farmers reluctant to go down this route.
Hopefully, the announcement that marts can now offer weighing and brokerage facilities will alleviate these worries.
Farmers are in unprecedented territory and there are several tough decisions to be made this spring.
As with any decision making, consider your options and what the knock-on consequences will be further down the line. Outlined are some issues that are likely to affect suckler farmers in the coming months.
Do up a simple cash flow plan
Cash is king and where farmers do not have sufficient working capital, problems can quickly spiral out of control.
So plan ahead, talk to your bank if you are unable to sell livestock and complete a cash flow plan for the farm to cover the next six months.
Starting point
Start off with the opening bank balance on 1 April. Factor in any guaranteed monthly income. After this, work out what the main monthly expenses will be.
You should know your recurring expenses.
For example, add up the usual monthly direct debits, standing orders, merchant credit, bank repayments and drawings for the household.
Expenses
Next, work out the main purchases over the coming months and when payment is required. For example, how much fertiliser will be purchased in April and when is payment due?
The same goes for concentrate, veterinary medicine, diesel and contractor bills. Repeat this on a month-by-month basis.
Tally up the outgoings for April and deduct from the opening bank balance. The net balance should be used as the opening balance for May, before deducting the specific monthly costs.
As with any decision making, consider your options and what the knock-on consequences will be further down the line
Can cash reserves cover these monthly expenses, with or without an overdraft facility? If not, then action needs to be taken to generate income. This could be through selling livestock or surplus stock, off-farm employment, machinery sales or extending the overdraft limit.
The point of the exercise is to know where the financial pinch points are for the farm and take appropriate action in advance. Keep updating the cash flow plan every couple of weeks to stay on top of farm finances.
Have you enough ground to carry additional livestock?
If you have to carry additional cattle for a few months, do you have sufficient land available to keep them?
Consider your options carefully. Identify the high-priority animals, such as spring-calving cows and calves.
Give these animals first preference at grass. Herd replacements come next, then grazing stores. Options to increase grazing ground include:
Renting ground to carry stock for a short-term period. While this will come at a cost, it can alleviate grazing pressure, especially if there is a major downturn in weather conditions. Increasing fertiliser rates to maximise grass growth. But, be mindful that while grass generally responds to additional nitrogen, higher fertiliser applications should be targeted to reseeded swards, or those with high levels of ryegrass. Applying 20 to 25 units of nitrogen/ac every third week will boost grass growth through the period of peak growth, from April to June. For best results, use a fertiliser with added sulphur, as well as applying an NPK product.Reducing the acreage of first-cut silage will provide additional grazing ground. To make up any deficit in silage reserves, aim for a bigger second and third cut if necessary. Alternatively, link up with local farmers carrying lower stocking rates and discuss the possibility of purchasing silage as a standing crop, bales or ensiled in the clamp.Dry off summer and autumn cows and hold inside
Another way to free up grazing ground for higher priority stock is to hold lower priority cattle indoors through the spring period.
There is still plenty of fodder around the country that can be utilised by animals such as dry cows. On farms operating summer and early autumn-calving cows, these animals could be dried off now.
As processors are working to a tight spec on carcase weight, do not let these cattle go overweight, as this limits sale options
If grazing ground is limited, dry cows could remain housed until late spring or after first-cut silage has been harvested.
Alternatively, to keep cows fit, identify one paddock as a sacrifice field. Keep the dry cows in this field and feed silage in a ring feeder or trailer.
Where farmers are struggling to sell forward stores and there is no option to graze these cattle, it may be an option to intensively finish these animals over an 80 to 100 day period, provided the sums add up.
Ideally, these cattle should be within 100kg from their target finishing weight. As processors are working to a tight spec on carcase weight, do not let these cattle go overweight, as this limits sale options.
Opt for a high barley and maize ration to get animals to lay down fat cover. Keep protein levels to 13% and include a product such as beet pulp. Also, make sure cattle have access to silage or straw and fresh water daily.
Have cattle in saleable condition
Although your normal sale plans may be disrupted, it is important to keep animals in a saleable condition. This will maximise the sale value of cattle when you do find a buyer.
Consider your sale options for summer and autumn-born male calves. For buyers looking for cattle to graze over the summer, steers will be easier to offload, compared to calves that have not been castrated.
Read more
What should I get for my cattle when selling privately?
Tullamore Farm: coping through coronavirus without student help
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