By far and away the most dramatic change in the current Nitrates Action Programme is the change to the derogation rules regarding maximum organic nitrogen stocking rate.
At the moment, farmers in a derogation can stock the farm up to a maximum of 250kg of organic nitrogen per hectare, but this is set to fall to 220kg organic nitrogen per hectare from 2024.
All livestock have an organic nitrogen excretion rate figure. The total number of animals and their nitrogen excretion rates divided by the number of hectares being farmed gives the average organic nitrogen rate per hectare.
If this figure is above 170kg N/ha, farmers must either apply for a derogation, increase the amount of land farmed, decrease stock numbers or export slurry to a farm that is less than 170kg organic N/ha.
With the introduction of banding, most farmers are seeing their organic nitrogen excretion rates per hectare increase and when this is combined with a decrease in the upper limit for those in derogation, many farmers are finding that they will exceed the new limits.
This has been the primary driver of demand for additional land, with the price of land shooting up as a result.
In March, Teagasc published a report on the impact on water quality of a reduction in the upper limit for a derogation. The report looks at the impact on profitability for a 100 acre dairy farm if the stocking rate falls from 250kg N/ha to 220kg N/ha.
At 250kg N/ha, the farm could carry 110 cows and make a profit of €973 per acre at a milk price of 33.6c/l. At 220kg N/ha, the same farm could only carry 97 cows and make a profit of €822/acre at the same milk price – a 16% drop in profit.
Most will agree that if that is the cost of fixing Ireland’s water quality then so be it. However, the report says that’s not the case and that other measures which have already been agreed are multiple times more beneficial at reducing leaching compared to reducing stocking rate.
The impact on farm profitability of these other measures is also a fraction of that of reducing stocking rate.
Based on this report, the IFA have called on the Government and the European Commission to allow more time for the existing measures to have effect before introducing a cut to stocking rate.
After much furore, banding was introduced earlier this year and all farmers had until mid-March to submit what milk yield band their herd is in for 2023.
Band 1: Cows producing less than 4,500kg milk annually are assigned an organic nitrogen of 80kgN/ha/year.Band 2: Cows producing between 4,500kg and 6,500kg milk annually are assigned an organic nitrogen of 92kgN/ha/year.Band 3: Cows producing over 6,500kg milk annually are assigned an organic nitrogen of 106kgN/ha/year. Every litre of milk weighs 1.03kg, so herds milking more than 4,370 litres and less than 6,310 litres annually are banded in the 92kg category, while those milking more than 6,310 litres annually are in the higher category of 106kgN/ha.
The amount of organic nitrogen permitted per hectare is 170kg/ha, with a derogation required to go above this up to a maximum of 250kg organic nitrogen per hectare, unless slurry is exported off the farm to bring organic nitrogen back under 170kg/ha.
With banding, those in the higher producing bands will hit the limit with a lower stocking rate compared to those in the lower yielding bands.
High yielding and highly stocked herds are the ones most affected by this measure. If producing more than 6,500kg/cow, the maximum stocking rate, with a derogation will be 2.36 cows/ha – down from 2.8 cows/ha currently.
This means that these farms will need to reduce cow numbers or get extra land in order to maintain existing cow numbers if they breach 2.36 cows/ha.
Cows are assigned to a band based on milk production in the previous year or the average of the last three year’s milk production. In 2023 only, farmers are allowed to elect what band they will be in, but the Department of Agriculture has said that this is for one year only and farmers will not be allowed to do that again.
It’s also important to note that the band is calculated based on all milk sold to a milk processor divided by the average cow numbers on the farm.
A cow is any dairy animal that has had a calf whether still in milk or not. Banding affects all dairy farmers, not just those in a nitrates derogation.
By far and away the most dramatic change in the current Nitrates Action Programme is the change to the derogation rules regarding maximum organic nitrogen stocking rate.
At the moment, farmers in a derogation can stock the farm up to a maximum of 250kg of organic nitrogen per hectare, but this is set to fall to 220kg organic nitrogen per hectare from 2024.
All livestock have an organic nitrogen excretion rate figure. The total number of animals and their nitrogen excretion rates divided by the number of hectares being farmed gives the average organic nitrogen rate per hectare.
If this figure is above 170kg N/ha, farmers must either apply for a derogation, increase the amount of land farmed, decrease stock numbers or export slurry to a farm that is less than 170kg organic N/ha.
With the introduction of banding, most farmers are seeing their organic nitrogen excretion rates per hectare increase and when this is combined with a decrease in the upper limit for those in derogation, many farmers are finding that they will exceed the new limits.
This has been the primary driver of demand for additional land, with the price of land shooting up as a result.
In March, Teagasc published a report on the impact on water quality of a reduction in the upper limit for a derogation. The report looks at the impact on profitability for a 100 acre dairy farm if the stocking rate falls from 250kg N/ha to 220kg N/ha.
At 250kg N/ha, the farm could carry 110 cows and make a profit of €973 per acre at a milk price of 33.6c/l. At 220kg N/ha, the same farm could only carry 97 cows and make a profit of €822/acre at the same milk price – a 16% drop in profit.
Most will agree that if that is the cost of fixing Ireland’s water quality then so be it. However, the report says that’s not the case and that other measures which have already been agreed are multiple times more beneficial at reducing leaching compared to reducing stocking rate.
The impact on farm profitability of these other measures is also a fraction of that of reducing stocking rate.
Based on this report, the IFA have called on the Government and the European Commission to allow more time for the existing measures to have effect before introducing a cut to stocking rate.
After much furore, banding was introduced earlier this year and all farmers had until mid-March to submit what milk yield band their herd is in for 2023.
Band 1: Cows producing less than 4,500kg milk annually are assigned an organic nitrogen of 80kgN/ha/year.Band 2: Cows producing between 4,500kg and 6,500kg milk annually are assigned an organic nitrogen of 92kgN/ha/year.Band 3: Cows producing over 6,500kg milk annually are assigned an organic nitrogen of 106kgN/ha/year. Every litre of milk weighs 1.03kg, so herds milking more than 4,370 litres and less than 6,310 litres annually are banded in the 92kg category, while those milking more than 6,310 litres annually are in the higher category of 106kgN/ha.
The amount of organic nitrogen permitted per hectare is 170kg/ha, with a derogation required to go above this up to a maximum of 250kg organic nitrogen per hectare, unless slurry is exported off the farm to bring organic nitrogen back under 170kg/ha.
With banding, those in the higher producing bands will hit the limit with a lower stocking rate compared to those in the lower yielding bands.
High yielding and highly stocked herds are the ones most affected by this measure. If producing more than 6,500kg/cow, the maximum stocking rate, with a derogation will be 2.36 cows/ha – down from 2.8 cows/ha currently.
This means that these farms will need to reduce cow numbers or get extra land in order to maintain existing cow numbers if they breach 2.36 cows/ha.
Cows are assigned to a band based on milk production in the previous year or the average of the last three year’s milk production. In 2023 only, farmers are allowed to elect what band they will be in, but the Department of Agriculture has said that this is for one year only and farmers will not be allowed to do that again.
It’s also important to note that the band is calculated based on all milk sold to a milk processor divided by the average cow numbers on the farm.
A cow is any dairy animal that has had a calf whether still in milk or not. Banding affects all dairy farmers, not just those in a nitrates derogation.
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