THE FUTURE of grain production in the State is in doubt following two poor harvests with low financial returns, a farm leader has warned.
Colum McDonnell, an extensive grain producer and chairman of the national grain committee of the Irish Farmers’ Association, estimates up to 50,000 hectares of land are no longer in grain production after last year’s harvest.
He says crop returns for two years running will fall significantly below the cost of production and most growers will lose between €40-€50 a tonne of grain based on the price of between €90-€100 per tonne being offered to them. “These levels of losses are not sustainable,” Mr McDonnell said. “Given today’s prices, a similar amount of land could disappear for next year. Credit availability will be the determining factor for many farmers.
“Grain prices are always on the floor this time of the year as harvest pressure peaks across Europe and traders move to offload surplus stocks at fire sale prices. Once the harvest is complete and surplus stocks are moved, the trade pulls back from selling and prices invariably rise.
“Unfortunately growers’ prices are pitched to the low of the market and they do not benefit from this rise.”