IFA warn of SFP grain slump

GRAIN growing could slump in 2005, with Teagasc warning farmers that the single farm payment (SFP) should not be used to support an unprofitable crop, and IFA saying grain is not viable at current prices.
IFA warn of SFP grain slump

IFA grain spokesman Paddy Harrington called on the trade to pay at least last year's €101 to €104/tonne for green barley at 20% moisture, exclusive of VAT. He said the Irish cereal industry is at a major crossroads, because many tillage farmers will restructure their new decoupled single farm payment onto a reduced area, giving up the 35% to 40% of cereal production which they do on conacre or leased ground.

"Continuing attempts by the trade to force down cereal prices below the cost of production will do irreparable damage to the industry", he said. "If the price outlook for cereals remains negative, many growers will not plant a crop for the 2005 harvest."

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