Farmers question logic of growing grain sold for ‘less than cost of production’

THE majority of grain growers are questioning the logic of growing a crop this year, the Irish Farmers’ Association has claimed.

Grain committee chairman Noel Delaney said the current forward price for grain this coming harvest would not cover the cost of production unless prices significantly increased, input costs were reduced dramatically and exceptional yields achieved.

Growers experienced losses of up to €150 per acre last season. High world and EU carryover grain stocks into the 2010/11 campaign will limit any prospect of a significant price rise.

“Current forward prices for new crop dried grain indicate a green price of €100/t and €110/t for barley and wheat respectively, a marginal lift on last year’s harvest price,” he said.

Mr Delaney said repeated IFA project team surveys clearly show that input prices in this country are seriously out of line with competitors, particularly for seed, fertiliser, crop protection, machinery and parts.

Historically, seed grain prices retailed on farm at around 2.8 to three times the price of a tonne of grain.

Over the last few years the trade has been looking for a multiple of 4.5 to five times the price of a tonne of feed grain.

“Farmers are increasingly using home- saved seed in an effort to reduce costs.

“Growers need to achieve minimum cost savings of 15% to 20% across the board on all inputs, in addition to the anticipated rise in grain prices, to restore profitability,” he said.

“No other sector of society is expected to work for nothing. This industry has no future unless growers achieve a margin over the cost of production.”