Tillage Farmers Struggle with Rising Costs Despite Grain Price Hike

Tillage farmers in Ireland have been struggling with increased input costs and volatile output prices over the past year. The recent announcement of grain prices by two major co-ops has brought some welcome relief, but it's still a tough situation for many growers.

This time last year, the price being offered was €185/t, while this year's prices are coming in at €220-€230/t for barley and wheat. While an increase of 18-25% is certainly better than a decrease, the rise in fertiliser, fuel, and plant protection costs has largely eaten away at the benefit.

It's hard to see how tillage farmers are making a margin, especially those renting land who must be losing money in many cases. The decline in premium grain availability is also a concern, with malting barley markets experiencing a downturn. In some cases, farmers whose malting barley was rejected will even receive more for selling it as feed barley.

The Centenary Co-op in Thurles has bucked this trend by offering the highest grain prices so far, including a price of €225/t for barley with bonuses. The co-op's relationship with local growers is built on producing a premium milk product using non-GM feed from Irish grain, and they are paying growers accordingly.