Dramatic slump in cereal planting

A DRAMATIC drop in the sowing of winter cereals has led to renewed fears that many farmers are thinking of pulling out of grain growing because of low profitability.

Winter wheat acreage sown to date is estimated by Teagasc to be 45,000-50,000 hectares, compared with 77,000 hectares grown last year.

No more than 12,000 hectares of winter barley has been sown. Some 20,000 hectares were grown last year.

The IFA also reported two weeks ago that winter wheat sowings were then running at only 40 to 45% of last year's levels, which they blamed on poor returns hitting growers' confidence.

IFA claimed that, in addition, many growers were "standing back" from rented land, in an attempt to bring prices back to realistic levels, and that many growers had successfully renegotiated rental prices back by €50-€80 per acre.

Growers may also have been put off by many landowners asking them to lock into five year plus contracts, so that the landowners can avail of tax concessions. IFA also said local circumstances and competitiveness (or lack of it) are key drivers of rental price.

Meanwhile, tillage specialist with Teagasc, Mr Michael Hennessy said the poor weather in October had not helped planting. But he said the new EU policy of decoupling, and the accompanying opportunity for farmers to "stack" their entitlements, are other factors.

Stacking is one of the concessions under the new decoupling policy which comes into effect in January, whereby a farmer need only use 50% of the area farmed in the 2000-2002 period, and still receive their full single farm payment.

This concession applies to land rented or leased, and with 51% of the national tillage area rented or leased, it is believed that many farmers, especially in the southern part of the country, are now seriously reviewing the rented land option.

The chairman of the IFA grain committee, Mr Paddy Harrington, had repeatedly warned in recent months that given the current difficult harvest conditions and price levels, growers would have no option but to avail of restructuring for the coming season, and evaluate on a case-by-case basis whether it would pay them to grow a crop for the 2005 harvest.

Teagasc says it is now too late to sow winter barley, and while winter wheat can be sown over the coming weeks, crops sown from now on will be much slower to germinate and the seed will be more prone to attack from birds.