Erratic grain price fluctuations add to market difficulties for farmers

INCREASINGLY erratic grain price fluctuations are adding to the market difficulties facing farmers, according to experts speaking at the Teagasc National Tillage Conference in Carlow yesterday.

Grain growers heard how volatile world grain markets are forcing more farmers to use risk management strategies to minimise the impact of price fluctuations on their businesses.

John Spink, head of Teagasc’s crop science department, said: “Irish farmers have tended to sell most grain ‘green’ off the combine, which has left them vulnerable to price volatility. This year is the first year where the opportunity to sell grain in advance of harvest has been more widely available to all growers.”

British-based farm manager Mark Wood added: “I try to manage the market risks, I may not hit the market highs with all my grain, but I don’t end up at the market lows.

“My average is what matters and over the last seven years I have been in the top half of the market average and have been able to reinvest in my business. I try to use the full marketing period. The trading period for each year’s crop is open for nearly three years but nearly all the grain is traded in the final year once the crop is harvested.”

Mark Wood sells one quarter of the harvest before the crop is planted, one quarter around the time of planting when the crop areas are confirmed.

One quarter is sold through the growing season. The final quarter is sold post harvest.