Signpost: Focus has firmly switched to minding the pennies

The notion of ‘luxury spending’ has gone out the window, as rising inputs swallow up the benefits of increased market returns, writes Waterford beef farmer Richard Long

Richard Long on his farm at Knockaunbrandaun, Co Waterford. Picture: Dan Linehan

What looked to be a promising year for beef farming, buoyed by strong factory returns, has turned to one where the focus has firmly switched to minding the pennies.

Beef farming is a tight margin business at the best of times and you’re depending on all your ducks forming an orderly row to ensure the bit between sales and costs provides a monetary reward for your year’s work.

Whether inside or outside the farm gate, the cost of day-to-day farming and living is rising. And, the value or need for each additional spend or investment must be questioned.

The notion of ‘luxury spending’ has gone out the window for this year at least, as rising input costs look set to swallow up the benefits of increased returns from the market.

Early doors, soil fertility – or the lack of – was identified as a factor that needed improvement on the farm here. And, although margins are tight, a quick cash flow budget for the year ahead has allowed me to allocate spending towards lime this year.

In comparison to other farm inputs, the cost of lime remains largely unchanged from previous years and I know it’s an area that’s going to provide me a return for my investment. This is especially the case as just 8% of the total farmed area is at the optimum level of 6.3 for soil pH, which has been identified from soil tests completed late last year.

For the year ahead, I’m planning on spreading approximately 200t of lime across a mixture of grazing and silage paddocks, with application rates varying from 1t/ac up to 3t/ac. Applications to silage ground will be delayed until the standing crop has been harvested to prevent the contamination of silage with lime particles, which may have a negative impact on preservation.

This will be the second time that lime will be applied, as the liming programme commenced in 2019. Since the initial venture, I’ve seen an improvement in soil fertility – especially phosphorous (P).

The initial soil tests indicated that just under 5% of the grassland area here was at optimum indexes for P in 2019; this has since climbed to 31.32%. In addition, the proportion of index 1 ground has fallen from 74% in 2019 to just 7% last backend.

Although these improvements are measurable, there’s also benefits to be gained in terms of nitrogen – particularly the release of nitrogen from the soil.

We are all well aware of the price of fertiliser at the minute and, not matter what the product, you’d struggle to purchase a nitrogen-based fertiliser for less than €1,000/t currently. So the benefits of correcting soil pH in terms of nitrogen release can’t be ignored.

The advisors to the farm here a quick to point out Teagasc research work which shows that correcting soil pH through lime can also release up to 80kg of nitrogen per hectare per year – the equivalent of 1.5 bags/ac of protected urea – making the decision to invest in lime this year that little bit easier.