IFA warns grain production’s future in doubt as returns fall below costs

AS fine weather boosted harvest work in many parts of the country yesterday, the Irish Farmers Association warned that the future of grain production is in doubt for many growers.

Crop returns for two years running will fall well below the cost of production, it said, pointing out that that between 40,000ha and 50,000ha of land is estimated to have disappeared from grain production after last year’s harvest.

IFA Grain Committee chairman Colum McDonnell said most growers will lose between €40/t to €50/t based on current indicated prices of €90 to €100/t for this harvest.

“These levels of losses are not sustainable. Given today’s prices, a similar amount of land could disappear for next year. Credit availability will be the determining factor for many farmers,” he said.

Mr McDonnell said the trade, as usual, will maximise its margins by incorporating locally produced grain in highly priced livestock rations.

He said none of the value added will be passed back to growers. Instead, the trade will base its green price on current imported prices, which are the low of the market.

Mr McDonnell said, despite achieving some of the highest yields in Europe, Irish grain producer margins have been eroded significantly in recent years.

“Irish fertiliser, seed and chemical prices are significantly more expensive than across Europe and this is eroding our competitiveness.”

Mr McDonnell said there is no way Irish growers can continue to pay top dollar prices for their inputs and take the lows of the market for the grain.