The average tillage farmer is set to lose over €7,000 in 2024 as a result of bad weather, regulations and new policies, Irish Farmers Journal analysis shows.

A 71.8ha tillage farm, all owned land, could be down over €7,240.50 in income from crops compared to a more normal season of weather.

The example includes winter barley, winter wheat, spring beans, spring barley and 12ha of spring barley planted into unestablished winter wheat ground.

Using average yields, excluding thin winter barley crops, estimated green harvest prices of €185/ha for barley, €195/ha for wheat and €250/ha for spring beans, and cost and returns figures from Teagasc, the farm is predicted to bring in just €14,517 (€202.20/ha) from crop production in 2024.

In a more normal growing season, with no replanting and improved winter barley yields, the total income on the 71.8ha of crops is estimated at €21,757.50 (€303.03/ha).

At an estimated protein payment of €500/ha, the farm, having maximised the area in its rotation, would receive a protein payment of €7,500 on 15ha. This payment depends on area planted across the country and could be lower as a result.

The farm will also be hit by convergence on its direct payments under CAP.

In 2022, the farm had a direct payment of €32,532.73. This will be down by €9,311.23 to €23,221.50 in 2024 and to €21,137.87 by 2026. A once-off tillage support payment is due of €3,500 for 2023.

CAP

Policy changes under CAP, mean that the farm is now required to have a 3m buffer zone along 1,800m of drains. This area totals 5,400m2 or 0.54ha – a loss of over €800 across the farm. Many tillage farmers also lost out on income in 2023 as they did not plant catch crops due to rules around buffer zones and so lost income to the value of €90/ha on some of their land.

Approximately 50% of tillage land is rented. Placing a conservative cost of €250/acre or €620/ha on land rental, that would place this farmer down €420/ha if renting land.