The Government has been urged to bring in new supports to farmers growing crops amid major concern over high costs they are facing for fuel and fertiliser and uncertainty over grain prices.
The National Fodder and Food Security Committee (NFFSC) has made a series of proposals on how tillage farmers could be supported in a letter to Minister for Agriculture Charlie McConalogue on Friday.
The committee - which includes representative of Teagasc and major farming organisations - was set up in the wake of the Russian invasion of Ukraine to prepare an industry response to concerns at a potential crisis in the supply of fodder and fertiliser.
Ukraine is a major international supplier of grain and Russia is a large-scale fertiliser producer.
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The committee’s submission to Mr McConalogue ahead of Budget 2023 talks has recommended new supports for all tillage farmers “to mitigate the high level of risks in production that are forecast for 2023.”
In his letter to the Minister the committee’s chairman Mike Magan suggests options including flat-rate support payments or risk management measures based on grain-fertiliser price ratios
The Government introduced a €10 million tillage incentive scheme earlier this year offering offering €400 per hectare to farmers to plant more crops to help offset the potential for a fodder crisis.
The initiative is believed to have contributed to a 6 per cent increase in the overall area sown compared to 2021.
The committee has proposed that the tillage scheme be continued to to support farmers to produce more tillage crops for 2023.
Mr Magan said the tillage scheme “should be targeted to ensure production is maximised and that grain crops that substitute for dry feed imports should be promoted”.
Another proposal is to continue similar supports for protein crops like beans and peas and to increase it from €300 per hectare to €350.
The committee recommends that the processing sector be developed to “take advantage of value-added opportunities for Irish crops” including increasing opportunities for export.
Produce from the tillage sector is not marketed abroad under the Origin Green brand for Irish meat and dairy despite its lower impact in terms of carbon emissions.
The National Fodder and Food Security Committee suggests that Ireland’s quality assurance and Origin Green credentials and standards could be leveraged to promote tillage produce.
In his letter Mr Magan says there is an urgent need to support the development of the crop production sector to address the deficit in grains and proteins in the Irish market and reduce greenhouse gas emissions among other reasons.
He puts the risks to the sector in stark terms. The cost of fertiliser is said to have increased 150 per cent and supply is a “real concern”.
Mr Magan says that: “While overall production is likely to be relatively good in 2022, aided by the earlier commitment to sow crops and the Tillage Incentive Scheme, the industry is shaken by the level of risk that was undertaken.
“Post-harvest reflection may result in concern about undergoing the same level of risk in 2023,” he adds and “risk reduction at all levels will have to be a priority.”
He says: “The major concern for all tillage growers facing into cropping for 2023 revolve around the increased input prices with no certainty on the grain price next harvest.
“Forward prices for September 2023 have declined sharply since May with factors like the unknown fate of grain being currently stored in Ukraine adding further to the risks.”
“Industry indications are that fertiliser availability for the autumn planting and following spring season is currently low.”
Mr Magan also says “using the Teagasc costs and returns methodology, production costs for cereals in 2023 are expected to be 60 per cent greater than in 2021″.
