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Midland Farmer - Spring 2024

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6 MIDLAND FARMER<br />

<strong>Spring</strong> <strong>2024</strong><br />

DAFM: Over 50,000t<br />

of organic feed<br />

needed next winter<br />

Government accused of lack of<br />

support towards dairy sector<br />

Minister of State at the Department of Agriculture,<br />

Food and the Marine, Pippa Hackett<br />

announced last Tuesday, February 20 that<br />

over 50,000 tonnes of organic feed is needed to<br />

meet requirements for next winter <strong>2024</strong>/2025.<br />

The minister made the announcement on the<br />

back of the results of an organic feed survey<br />

that indicates “growing demand” for organic<br />

feed of all types.<br />

A total of 912 organic farmers participated in<br />

the survey, which is approximately 25% participation<br />

rate among the cohort of farmers in<br />

organics before the <strong>2024</strong> intake.<br />

Based on the replies, it is estimated that overall<br />

demand for concentrates will be in the region<br />

of 33,000 tonnes.<br />

Demand could be in the region of 20,000 tonnes<br />

for straights, 6,000 tonnes for protein crops (such<br />

as a pea/barley mix), and for 50,000 bales of fodder.<br />

Minister Hackett said: “Organics and tillage<br />

have been highlighted in FoodVision as an<br />

opportunity for farmers.<br />

“These results show the growing demand for<br />

organic feed and the opportunity to increase the<br />

area of organic tillage in Ireland. There is an<br />

opportunity for an organic Irish mill as the sector<br />

continues to grow.”<br />

The survey took place against the background<br />

of a significant increase in organic farmer numbers<br />

and area over the past couple of years.<br />

<strong>Farmer</strong> numbers doubled to 4,000 in 2023, with<br />

another 1,000 farmers joining the Organic Farming<br />

Scheme in <strong>2024</strong>.<br />

Organic land will reach 5% of overall agricultural<br />

area in <strong>2024</strong>, and is well on target to<br />

achieve 10% by 2030, as set out in Ireland’s Climate<br />

Action Plan.<br />

The chair of the Irish<br />

<strong>Farmer</strong>s’ Association<br />

(IFA) Dairy Committee<br />

has accused the government<br />

of a lack of support<br />

for the dairy sector.<br />

Stephen Arthur said that<br />

farmers with herds of<br />

between 40-60 cows are<br />

under pressure to comply<br />

with regulations coming<br />

from the European Union,<br />

particularly around nitrates<br />

and water quality.<br />

“We have a department of<br />

agriculture that seems to<br />

be willing to carry out the<br />

instructions of European<br />

policy.<br />

“They seem to be a pro-<br />

European policy department<br />

and they don’t<br />

understand the consequences<br />

of these policies<br />

inside the farm gate.<br />

“You take a guy there<br />

with 60 cows and he has<br />

everything done, everything<br />

proper. He has to<br />

gather up maybe 10, 12 or 14<br />

acres to keep his cows, to<br />

keep where he is, and he<br />

has to pay €330-400/ac for it,<br />

just to hold onto what he<br />

has,” he told farming website<br />

Agriland.<br />

Arthur said that the dairy<br />

farm is the “main fabric of<br />

rural Ireland” but it is<br />

being “obliterated” by government<br />

policy.<br />

“Teagasc has shown that<br />

reducing the stocking rate<br />

from 250kg [N per ha] to<br />

220kg will have very little,<br />

if any, impact on water<br />

quality. Yet it has a massive<br />

impact on farm incomes,<br />

especially the smaller<br />

farms,” Arthur added.<br />

He also said that farmers<br />

are annoyed about the environmental<br />

impact of a possible<br />

25% increase in<br />

passenger numbers at<br />

Dublin Airport which is<br />

currently being considered<br />

by council planners.<br />

“<strong>Farmer</strong>s are quite<br />

aggrieved over this. They<br />

feel that the dairy cow is<br />

paying for everything.<br />

“They’re paying for the<br />

expansion of the cap in<br />

Dublin Airport, they’re<br />

also paying for the rectifying<br />

of water quality and<br />

getting to the [emissions]<br />

levels for greenhouse gases<br />

(GHGs),” he said.<br />

The IFA chair said that<br />

dairy farmers should be<br />

able to avail of grants of<br />

70% under the Targeted<br />

Agriculture Modernisation<br />

Schemes (TAMS) for<br />

enhanced slurry storage<br />

facilities.<br />

“Rather than making<br />

more regulations to make<br />

more people non-compliant,<br />

let’s do a system to get<br />

everybody compliant, get<br />

the capacity built up where<br />

we can manage the nutrients<br />

on the farms,” he said.<br />

In order for farmers to<br />

keep calves on farms<br />

longer, Arthur said they<br />

should be allowed to claim<br />

VAT back on calf feeders<br />

and drafting units, while<br />

farmers rearing calves<br />

should be paid €100/animal.<br />

He added that carbon<br />

taxes should be used to<br />

incentivise the early<br />

slaughter of cattle.<br />

Arthur said that 2022 was<br />

a particularly successful<br />

year in Irish dairy farming<br />

with an average income of<br />

over €150,000. However,<br />

since then milk prices have<br />

tumbled from record highs<br />

against the backdrop of<br />

volatile global markets.<br />

“That’s my fear that we<br />

had one really good year<br />

and based on one year’s<br />

economics we are going to<br />

devise the policy of dairy<br />

farming going forward in<br />

the future. I think that’s<br />

wrong.<br />

“Look at this year, we’ve<br />

farmers there with big cash<br />

flow issues, income is way<br />

down,” Arthur said.<br />

“<strong>Farmer</strong>s have €1.2 billion<br />

euro invested and borrowed<br />

on their farms,<br />

interest rates are gone<br />

through the roof. They’re<br />

constantly spending just to<br />

hold on to where they are.<br />

“It’s frustrating for any<br />

farmer that’s out there. The<br />

two kinds of phone calls<br />

we’re getting is the guy<br />

who cannot get the land to<br />

rent because he can’t compete<br />

in the market and the<br />

other guy who just wants to<br />

get out,” he added.<br />

DAIRY EXIT SCHEME<br />

The IFA Dairy chair said<br />

there is a “strong appetite”<br />

among farmers for a dairy<br />

reduction or exit scheme.<br />

However, he believes that<br />

Minister for Agriculture<br />

Charlie McConalogue may<br />

not bring such a measure<br />

forward.<br />

“Why would he bring in a<br />

scheme when he’s taking<br />

the cows out for nothing,<br />

his policies are taking the<br />

cows out for nothing. Why<br />

would you put money into a<br />

scheme when you have a<br />

tool, a blunt object called<br />

the nitrates directive?<br />

“The dairy milk cheque<br />

has been so important to<br />

small rural communities<br />

the length and breadth of<br />

the country, European policy<br />

is just slowly eroding<br />

that,” Arthur explained.<br />

“The policies that they<br />

are bringing in, it’s just<br />

destroying the rural communities<br />

of milking cows,<br />

of family farms.<br />

“We’ve a [farmer] age profile<br />

heading for 60 years of<br />

age. In five or six years’<br />

time I can see lots of dairy<br />

farmers gone out of business.<br />

They don’t want to be<br />

there, they’re tired of milking<br />

cows and want to get<br />

out,” he added.<br />

STEPHEN<br />

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Chartered Tax Advisers &<br />

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Advice on agricultural building<br />

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