Auctioneers ‘hyping con-acre prices’

SOME auctioneers were accused by the Irish Farmers Association yesterday of hyping con-acre prices on the back of one-off higher grain prices.

IFA Grain Committee chairman Colum McDonnell claimed these auctioneers were creating unrealistic expectations for land owners in terms of land rental values.

“The price of grain this harvest has been driven by adverse weather events which affected yields right across the globe,” he said.

“Floods in northern Europe, coupled with heat waves across central and Eastern Europe, resulting in reduced production, were the main price drivers. These events saw a potential 23 million tonnes wiped off this year’s EU harvest.”

Mr McDonnell said the return of set-aside land and an increase in other land switched to cereal production could see a potential increase of 35 million tonnes of cereals in the EU 2008/09 harvest.

Globally, the intention of farmers is to increase cereal production London grain futures are already reflecting these moves and new crop wheat for the 2008/09 harvest can be purchased at a discount of €60 on today’s price.

Mr McDonnell said farmers should take a longer term view before giving away hard earned money. “Seed companies have raised prices of cereal seed by €140 to €180/t. If grain farmers are not careful they will end up financially worse off next harvest than they have been for years,” he said.