Features

Grain prices a real concern

8 Nov , 2016  

The current price of grain has become major concern amongst farmers as the world market continues to be a volatile area.

Farming is dictated by the world market whether it be the price of milk or cereals and the current price has left it very difficult for farmers to make a living.

For this month’s edition of Irish Tractor & Agri we speak to grain and potato farmer John Carroll who is the IFA Grain County Chairman in Louth.

Based in Paughanstown Farm, Dunleer, John farms in the region of 410 acres which is split into 350 acres for cereals and 60 acres of potatoes.

Such is his commitment to his work that John has held numerous positions within the IFA including that of chairman of the grain committee in the Wee County.

He admitted that these are uncertain times for any farmer but especially those involved in the harvesting of cereals.

The future of Irish tillage farming is in doubt as farmers face an unprecedented income crisis due to continuing low grain prices, coupled with a very difficult and late spring.

“These are testing times for farmers. The world market is not in a stable position at the moment and that is having an adverse effect on us here in Ireland,” said John.

Current indications are for a further reduction in overall sowings for the crop year with spring barley likely to fall by an additional 15,000 ha as many growers are forced to leave land fallow. The EU Commission and Parliament, despite numerous warnings from the IFA, have failed to recognise the worsening income situation and take appropriate measures to support growers.

“No there is not enough being done to support farmers at the moment. There is two million tonnes of grain being imported into the country every year. The price per tonne has been affected by this.”

The International Grains Council in its latest report has revised total world grain production marginally lower by 9mt from 2,006mt to 1,907mt from last month, 45mt below last year’s record crop. Markets did not react as carryover grain stocks of 466mt (+18mt on last season) into the 2016/17 crop year are seen as more than adequate.

Old crop Irish barley is trading from €145/t to €147/t with new crop from €152/t to €153/t. Old wheat crop is a little weaker trading from €153/t to €155/t with new crop trading €10/t over old crop. Maize prices are up €2/t on the week trading at €168/t.

John has been a member of the Irish Farmers’ Association for many years and more importantly for him the National Grain Committee which represents Ireland’s 13,000 cereal growers. Its members are elected by IFA’s 25 county executives. The most important issues include feed grains, peas, beans and oilseed prices and malting barley premium. The Committee was instrumental in developing price risk management tools for malting barley growers to minimise grain price volatility.

The grain produced by John on his farm is sold locally to Tom McDonnell and Philip Halpenny Ltd, while large square baled straw is sold in the north.

John revealed that they do all the work themselves with a New Holland combine doing the harvesting, while he operates a Grimme harvester for the potatoes and a 6400 Massey series doing the bulk of the other work.

“We get someone in to do the slurry and that is the only contractor that would be working here, everything else is done by ourselves.”

Most of the machinery that John uses is sourced from local dealers.

As stated John produces 60 acres of potatoes annually and these are also sold to producers like Wilson’s Country Potatoes, Country Crest and Tom Kennedy Ltd.

The Irish potato industry is an important indigenous industry worth €80m at farm gate, with 500 growers planting over 9,000 hectares annually.

“Over the last number of years, potato sales have fallen in Ireland so to arrest the situation, the IFA and Bord Bia have launched a three-year campaign aimed at encouraging the consumption of the potato in Ireland, especially among younger consumers. It is co-funded by the EU, Ireland’s Potato Industry and the Department of Agriculture, Food & Marine.”

John also hosts farm open days for local students and school tours.  Despite the IFA holding meetings only once every six weeks, between that and the farming John is kept very busy, so he is fortunate to have the support of his wife and children.

“My wife Nicola would look after all the paperwork and anything that would have to be done for audits, which is a huge help to me.

“We have four children two girls and two boys. We have Una and Eilish and twin boys Sean and Liam who only recently turned 17.

The lads have autism and they are an inspiration to us all. They are currently learning to drive and they are very good at art, the drawings they produce are unreal, they are very talented.”

John Carroll
Paughanstown Farm
Dunleer,
Co Louth

Tel: 086 2489212

Taken from Irish Tractor & Agri magazine Vol 4 No 5, June 2016

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