A great return from the Galway grain crops but prices remain dismal

‘Great yields but poor prices’ has summed up the mood of Galway grain growers as their harvest work has received a boost with the recent spell of settled weather.

Some spring barley growers achieved unprecedented yields of over four tonnes to the acre while the spring crops are also expected to deliver three tonnes, or even a bit more, to the acre.

However the prices scenario continues to remain depressed for the grain sector with many of them represented at last week’s IFA incomes protest in Dublin last week.

Green barley at 20% moisture is making in the region of €150 per tonne but even with the higher yield the grain men are struggling to break even on this figure.

Downward pressure on grain prices in world markets is the main problem for the Galway and Irish grain growers as they bargain with the merchants to try and secure the best possible deals.

“The yields have been very good this year with over four tonnes to the acre returned for spring barley but at current prices no one is making any money from the harvest. Break even is the best we can hope for,” Galway IFA Grain Representative, John Daly told the Farming Tribune.

The Killconnell grain farmer said that what was crippling the grain farmers was the high cost of inputs, especially fertiliser, and the low prices on offer.

“We really would need to be buying in fertiliser at about €100 a tonne less than what we’re paying at present for it. With the current cost of inputs, it’s just impossible to make any money from grain,” said John Daly.

He attributed the strong yields this year to a very benign April [our best month of the year so far] that gave excellent growing conditions in terms of sunshine and soil temperatures.

“Although the rest of our summer was poor, the grain crops got a tremendous early boost from the weather in April. We certainly have no complaints about the yields but the figures at the end of the season just aren’t adding up,” said John Daly.

All of the winter barley crops in Galway have been cut for the past three weeks or so with the combines now in full swing harvesting the spring crops.

IFA National Grain Chairman Liam Dunne said that the EU Commission must act now to stem the deepening income crisis developing on tillage farms. Failure to control undue influence by speculative investors on grain and oilseed prices, and anti-competitive practices by fertiliser manufacturers, is compounding the income situation, he said.

“Harvest prices for the third year in a row will struggle to cover production costs, despite good yields, as investors bet on international grain and oilseed prices moving lower.

Farmers will once again end up subsidising grain production from their basic/greening payment or other reserves that are well depleted this stage following on from a prolonged period of low grain prices,” said Liam Dunne.

He said that the relentless price/cost squeeze was negatively impacting on the tillage sector and unless there was a serious realignment of the cost base, arable crop farming would have a limited future in Europe, never mind Ireland.