Today's Farm Sept-Oct 2010

SEPTEMBER-OCTOBER 2010 VOLUME 21 NUMBER 5

Autumn Grazing Management 16Robust Milk 20Keep tabs on sheep tags 21Sucklers – getting into the top 10% 22Tax tips 26Keeping on top of Compliance 30Soil management after REPS 32Botanics, Forestry, Coming Events and more…..

Planning: The Key to Business Expansion 12

10607 TEAG TODAYS FARM SEPT-OCT_Final Cover 20/08/2010 12:45 Page 1

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Today’s

farm

September/October 2010 | Today’s farm | 3

COMMENT

Youcan’tbeatplanning

MarkMooreEditor,Today’s farm

As prices firm up, farmers arelooking ahead with confidenceand considering expansion.The

key point is to plan carefully andprioritise the steps within your plan toensureyoumake themost efficientuseofresources and avoid pitfalls. In that way,you’ll end up with a more profitablebusiness and not just a larger one.

On page 12,Tom O’Dwyer outlinessome key thoughts on planning anybusinessexpansion. Onpage 36, MaryRyan describes aproject wheregrowers jointlyplan their forestthinning. Byteaming up, theygain economies ofscale and betterprices fromcontractors.

Any plan isbuilt aroundintermediate andlong-term goals,which will tell youif your plan is ontrack and, ultimately, whether it hasbeen successful. Goals can also helpwithday-to-day management, offeringsomething to aim for and achieve evenwhen there are no major businessdevelopments in train.

At this year’s Ploughing Match,Teagasc invite visitors to our stand tocommit to small goals which could havea big effect on the profitability of theirbusiness (page 4). Every farmer takingpart can discuss these goalswith expertson the day, commit to a simple buthugely beneficial change, and beentered for a valuable prize draw. Nowthat sound’s like a plan!

Is e Today’s farm an iris do chliaint Teagasc. Bıonn altanna teicniula ann faoi chursaıdeirıochta, faoin eallach, faoi chaoirigh agus faoin gcuradoireacht, agus faoi go leor eile. Isminic altanna faoin timpeallacht agus faoi dheiseanna eagsulaithe feirme san iris freisin.Gne an-tabhachtach den iris is ea na haltanna faoin gcaoi le cursaı gno na feirme alaimhseail. Ar na topaicı eile a chludofar amach anseo beidh tairgeadh fuinnimh ar anbhfeirm, an fhoraoiseacht, an ghairneoireacht, srl. Agus beidh altanna ann o thrath gocheile faoi chursaı feirmeoireachta thar lear freisin.

Today’s farm is a bi-monthly publication produced in a joint venture between Teagasc andthe Agricultural Trust, publishers of the Irish Farmers Journal and The Irish Field.

Editor: Mark Moore | Editorial team: Alison Maloney, Joanne Carroll, Eric DonaldChief sub-editor: Leslie Horgan | Sub-editor: Regina HoranArtwork: Garrett AllenCover design: Design at DBA | Imaging: Owen McGauley, Sean O’FlahertyPrinting: Boylan Print Group, Drogheda, Co Louth | Advertising: Frank McGouranAll Media Matters (01) 4941071 086-8111567 [email protected]

All editorial enquiries to: Teagasc, Oak Park, Carlow Tel: (059) 9170200 Fax: (059) 9183498e-mail: [email protected] | web: www.teagasc.ie

The publishers do not accept responsibility for any private and trade advertisements oradvertising insertions included in this publication. Occasional reference in thismagazine totrade names and proprietary products may be inevitable. No endorsement of namedproducts is intended, nor is any criticism implied of similar products which are notmentioned.

contents4 Planning for the Ploughing

6 Etc page

8 Upcoming events

Dairy12 Expansion: Plan and Prioritise

16 Autumn Grazing Management

20 Robust Milk

Sheep21Keep tabs on sheep tags

Beef22 Sucklers� getting into the top10%

24What route for weanlings?

Financial management26 Tax tips for 2010

Environment30 Keeping on top of Compliance

Tillage32 Soil management after REPS

Machinery34 Cost or benefit?

Forestry36 Grower clusters keep thinning costs down

Botanic Gardens38 Putting the buzz back in gardening

COVER | caption:Amyand Daniel O’Donnell, who farmnearCappoquin,CoWaterford, are part of theTeagasc Greenfield Dairy programme.They created a detailed expansion planwhichwill guide the growth of their dairyfarm.See page12

PICTURE:MarkMoore

The key pointis to plancarefully andprioritise thesteps withinyour plan toensure youmake themost efficientuse ofresourcesand avoidpitfalls

HEALTHYPEOPLE,HEALTHYCOWS20 Sinead McParland saysmilk is set

to become evenhealthier

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4 | Today’s farm | September/October 2010

ploughing 2010To

day

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HE ‘One Goal Challenge’ is thetheme for this year’sTeagascstand at the National Plough-ing Championships, which will

take place near Athy from 21 to 23 Sep-tember. As usual, there will be a team ofadvisers, educators and researchersavailable on the stand to inform and ad-vise visitors about the full range of Tea-gasc activities and services. But thisyear we are taking a slightly differentapproach by offering farmers andgrowers, and other rural dwellers, theopportunity to consider and commit to arange of specific goals which could ben-efit their business or career.

The goals will be presented underthe headings Dairy, Cattle, Sheep, For-estry,Tillage, Horticulture, Environ-ment, Diversification, Farm BusinessManagement and Education.

Each of these sectors will offer arange of goals to choose from and visi-tors might decide to opt for three or fourgoals� one from each. Each of the goalswill be SMART: Specific, Measurable,Attainable, Realistic,Time bound.

This means they are not vague; youcan measure whether it has beenachieved, you have the means to com-plete it and a date is set by which timeyou will have achieved your goal.

A SMART goal might be as simple assetting a date by which you will havejoined a discussion group; of course,then you must follow through.You mightdecide your goal is to establish the suck-ler beef value of your stock bull and plana replacement, if necessary, by the startof February.A tillage farmer might setsoil sampling of all or part of the farmbefore Christmas as his SMART goal.

In each case the steps needed to fulfilthe goal are manageable. If we set toomany or unrealistically ambitious goals,we often fail to achieve any. But don’tunderestimate the power of SMARTgoals.They can dramatically improve abusiness by generating progress andmomentum for change. A goal achievedgenerates an appetite for more.

The Ploughing match offers a greatopportunity to set yourself someSMART goals.You can choose whicharea of your business needs some atten-tion and chat withTeagasc experts toformulate a goal which, once reached,will represent a decisive step forwardfor that enterprise.

To add some fun to the process, eachperson who commits to a goal (you maycommit to several) will be entered into adraw for worthwhile prizes.The drawwill take place at the end of each day.

Here’s a SMART goal you could setyourself: to attend the Ploughing match,visit theTeagasc stand, pick up an entryform and commit to one of the goals spe-cified there � or write your own. Seeyou there!

�MarkMooreAswell as the normal access to advisers, researchers and educators, visitors to theTeagasc standat the Ploughing Matchwill be able to discuss and formulate SMART goals for their businesses.

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Today

’sfarm

Combined heat and powerat Oak ParkElectricity generation typically con-verts approximately 30% of input en-ergy into output energy.

Efficiency can be improved signifi-cantly if thewaste heat from electricityproduction can be used in a systemcalled combined heat and power pro-duction (CHP).

CHP plants can use a variety offeedstocks, including biomass. How-ever, small-scale biomass CHP plantshave not been available until recentlyand the technology is still maturing.

Government renewable energy

plans include the production of800MWof electricity from biomassCHP but this plan will be difficult toachieve unless a range of biomass CHPplant sizes are available.

One small-scale biomass CHP tech-nology that is nowavailable is a plantin which an updraft gasifier and gasburner are combined with a Stirlingengine� an external combustion en-gine.

Heat generated in a boiler is trans-ferred through heat exchangers to theengine, where it is converted into ro-tary motion which, in turn, is con-verted into electricity through analternator attached to the crankshaft.

ACHP plant based on the aboveprinciple is now working at TeagascOak Park.Woodchips are augered intothe gasifier (black cylinder) and theresulting gas will be burned in thecombustion chamber (blue cylinder).

Heat from the combustion processis being used to heat water but also tosupply electricity through the Stirlingengine (green).

BOOKREVIEWTree Planting & Aftercare: apractical handbook, edited byElizabeth Agate (BTCV) e17

This A4-sized book of over 130 pages isexactly what the title indicates — apractical guide to the planting and caringof trees. It gets going with sensibleinformation and advice on planning anddesign (what species to plant where?),tools and equipment. A chapter onpropagation covers how to collect suck-ers and seeds, breaking dormancy,sowing and growing on, lifting for finalplanting and a summarising chart listingthe practicalities for all the main speciesof trees you are likely to plant.

A very useful chart is included,showing the minimum distances atwhich trees may be planted from ahouse to avoid subsidence. The mainchapter describes practical techniquesfor planting trees and gives full detailson different ways of protecting them fromanimals. Post-planting care of trees hasa chapter of its own and covers not justweeding, but pests and diseases, prun-ing, thinning and coppicing.

�Sean Sheehan

Small plots� bigharvestIn 2010, the Oak Park crops research team harvested about6,000 cereal plots in more than 50 different trials in ninelocations across seven counties. Each plot was weighed,sampled and recorded in the field. The trials involveddisease assessments and pre-harvest yield sampling,followed by a series of lab tests on the harvested grain.

The plots are part of the crop science researchprogramme which includes trials looking at disease controland yield formation (2,600 plots), nutrient use efficiency(1,850), cultivation systems, greenhouse gas emissions, etc(850), weed control and other topics (600). Most of the plotscomprise winter wheat (2,900) and spring barley (1,700),with winter barley, spring wheat and lesser amounts of rapeand beans making up the remainder.

With up to 130 pieces of research data created from eachplot, the harvest yields an amount of information that will beanalysed and interpreted to assist growers in comingseasons.

Richie Hackett and IvanMitchell harvestingwinter wheat plots.This combine features an Oak Park specified grain sampling/de-livery systemanda Harvestmaster electronic weighingand datarecording unit.

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upcoming eventsTo

day

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NATIONALFORESTRYDEMONSTRATIONOFTENDINGANDTHINNINGOFBROADLEAFWOODLANDS,THURSDAY9SEPTEMBER,DUNMANWAY,COCORK.

Convene at the Parkway Hotel, Dun-manway, any time between 11am and1pm. Participants will be bused to thenearby site and the demonstration willtake approximately 2.5 hours. Pleasebring appropriate footwear and raingear. All are welcome. Event is free. Formore information, visit www.teagasc.ie/forestry

GROWINGWOODLANDS�ENHANCINGOURLIVES,3TO17OCTOBER,ROSCOMMON

GrowingWoodlands � Enhancing ourLives is a series of events celebrating themulti-functional benefits that trees andwoodlands can bring to our lives.

A number of organisations in the for-estry and farming, non-Government andState sector have come together tohighlight these benefits to the people ofRoscommon from 3 to 17 October.

It is very appropriate that ‘GrowingWoodlands �Enhancing our Lives’ istaking place during the InternationalYear of Biodiversity, with the launch ofthis series of events coinciding with Na-tional Trails Day on 3 October while Na-tional Tree Day takes place onThursday7 October. For more information, visitwww.teagasc.ie/forestry

College Open Days

1 October Kildalton College Open Day Kildalton Agricultural & Horticultural College

5 October Mountbellew College Open Day Mountbellew Agricultural College

5 October Clonakilty College Open Day Clonakilty Agricultural College

6 October Gurteen College Open Day Gurteen Agricultural College

6 October College of Amenity Horticulture Open Day College of Amenity Horticulture, National Botanic Gardens

7 October Ballyhaise College Open Day Ballyhaise Agricultural College

INTERNATIONALGRASSCONFERENCE,14&15OCTOBER,CORK

Grasses forthe Future

Perennial ryegrasses:current and future geneticpotential

Aunique opportunity for all grasslandindustry stakeholders (breeders, mer-chants, advisers, farmers, evaluators,scientists) to come together to discussthe future needs of the sector.

Date VenueThursday,14 October Silver Springs Hotel,

Cork

Friday, 15 October Moorepark Conference

Centre, Fermoy,

Co Cork

OnThursday and Friday,14 and 15 Octo-ber 2010,Teagasc will host a grassbreeding and evaluation conference andworkshop.

The conferencewill focus on livestockproduction requirements from peren-nial ryegrass as a feed source in tempe-rate climates.

This conference provides a uniqueplatform for all stakeholders to partici-pate in strengthening progress in thegrassland sector.

Day 1 of the conference will examinegrass breeding and evaluation, and thepossibilities of influencing a more ac-celerated uptake of grass breeding pro-gress at farm level. This debate will

provide a forum for stakeholders, bree-ders, evaluators, grassland scientistsand the industry to discuss the grass-land traits required to improve live-stock production systems.

Day 2 will feature a workshop atwhich all stakeholders in the chain,from breeder to farmer, will be able todiscuss their priorities for grasslandand seek to influence the future ad-vances in variety development. Two sitevisits, focusing on delivering the ad-vances generated by grass breeding tothe industry, will take place to theDepartment of Agriculture, Food andFisheries Crop Variety Evaluation siteat Ballyderown Farm and TeagascMoorepark’s Grassland Research Pro-gramme following the workshop.

EBIANDEXPANSION�CROOKSTOWN,COCORK

Date Venue8 September, 11.30 am to 2.00pm Liam Leahy, Bridelands, Crookstown, Co Cork

EBIDAIRYFARMOPENDAY�BALLACOLLA,CO.LAOIS

Date Venue9 September, 10.30am to 3.30pm Padraig Hyland, Fearagh, Ballacolla, Laois

See also p18-19

SHEEPWALKS

Topical issues such as grasslandmanagement, breeding and flock healthwill be discussed

7 September at 7pm Milford Livestock Mart, Donegal

8 September at 10:45am John Reneghan, Johnstown, Kilkenny

FBD Insurance plc is regulated by the Financial Regulator

Here are just some of the initiatives we support:

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No insurer is more involved in the Irish farming community than FBD

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upcoming eventsTo

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DAIRYCALFTOBEEFOPENDAYATJOHNSTOWNCASTLE, 2NOVEMBER

Dairy calfto beefopendayLive exports of dairy male calves havebeen increasing over the last few yearsand it is likely that 150,000 calves will beexported.

These calves are exporting at rela-tively low return (less than €100) to theproducer and to the country. In April2010,Teagasc, with the support of DawnMeats, began a new dairy calf to beeftrial at Johnstown Castle to question ifthere is a profitable way of producingbeef from these calves in Ireland.

OnTuesday 2 November,Teagasc willhold a conference and an open day inJohnstownCastle specifically focusedondairy beef production.

The conference will feature all of theinformation fromTeagasc on dairy beefproductionandcalf rearingandtheopenday will allow farmers to see all the ani-mals on trial and, in particular, what canbe achieved with good grassland man-agement in late autumn.

Currently, 300 bull calves are beingcompared across 10 different finishingsystems. Approximately 60% of thecalves are of Holstein-Friesian descentwith the remainder being JerseyXHol-

stein-Friesian calves. Sixty calves areindoors on an ad-lib concentrate diet; 30finished at less than eight months, withthe remaining 30 calves slaughtered at12 months of age. Potentially, this meatcan be sold as Rose¤ veal.The remaining240 calveswereput out to pasture for thesummer.

Lifetime performance of concentratesupplementation during the first sum-mer for calves at pasture will also be in-vestigated; 120 calves were fed 2kg ofconcentrate with the remaining 120calves on a grass only diet.Thirty bullsfrom each group will be slaughtered atless than eight months for the white vealtrial.

The results from the first 90 calvesslaughtered at eight months will beavailable at the open day.The remaining180bullswill be slaughteredunder threedifferent systems.

Thirty bulls from each treatment willbe fedagrassonlydiet,plus30bulls fromthe group that were being fed a pastureonly diet plus 2kg concentrate will berehoused at eight months and built uponto an ad-lib diet for six months. Sixtybulls from each of the two grazing treat-ments will be carried over the first win-ter on a grass silage diet. After threemonths at pasture, 30 bulls from eachgroupwill behousedandbuilt upontoanad-lib concentratediet for threemonths.

NATIONALORGANICCONFERENCE,16SEPTEMBER,COUNTYARMSHOTEL,BIRR,COOFFALY

Challenges andopportunities fororganic producersAn exciting panel of speakers will ex-plore the Challenges and Opportunitiesfor Organic Producers at this year’s con-ference.The processor’s perspective onmarket opportunities:* Vincent Clery, Glenisk Dairies* John Purcell, Good Herdsmen* John Flahavan, E. Flahavan & SonsLtd

* Greg Begley, Simply Organic LtdSuccessful Organic Brands* Omega Beef Direct, Drumeen Farm,Kearns Organic* Growers, Moonshine, MossfieldCheese, Clanwood Farm

Adding value:* Developing a new product* Branding* Funding new enterprise

Soil nutrition� challenge to get it right:* Nutrient budgeting* CompostingA farmer’s perspective

Pre-booking essential. [email protected],Mellows Campus, Athenry, Co Galway.

The conference fee of €60 includesorganic lunch.

On 2November,

Teagasc will hold aconference and openday in JohnstownCastlefocusedondairybeef production

23/8/1017:08


Today’s

farm

Designing the future of farming

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TEAGASCAGRI-ENVIRONMENTCONFERENCE2010,7SEPTEMBER,BALLYKISTEENHOTEL,TIPPERARY

TheTeagasc Agri-environment Confer-ence 2010 will provide a forum for thoseworking in agri-environmental arena toreceive an update on the most topical is-sues affecting agriculture in Ireland.

This is a departure from previousconferences (formerly known as the Na-tional REPS Conference) in the sensethat discussions will not be limited toagri-environmental schemes.

The conferencewill focus onpracticaloutcomes from current agri-environ-ment research, advisory experience andwill examine policy drivers and theirpotential impacts.

This year’s event will comprise an in-door conference in themorning followedbya farmwalkon theSoloheadResearchFarm in the afternoon.

NATIONALTILLAGECROPSFORUM,14SEPTEMBER,2PMTO5.30PM,KEADEENHOTEL,NEWBRIDGE,COKILDARE

National tillage crops forumSession One — Technology & MarginsChairman: Jim O’Mahony, Teagasc

2pm to 2.30pm Winter Cereals Varieties for 2010 — Barry O’Reilly, DAFF

2.30pm to 2.50pm Crop choice & margins for 2011 — Shay Phelan, Teagasc

2.50pm to 3.10pm Weed control in winter cereals & oilseed rape

— Tim O’Donovan, Teagasc

3.10pm to 3.30pm Soil organic matter & soil analysis - Mark Plunkett, Teagasc

Session Two — Grain Marketing ForumChairman: Andy Doyle, Irish Farmers Journal

3.30pm to 4pm Grain market overview & price risk management tools

— Jack Watts, HGCA

4pm to 5pm Developments in Irish grain market — John Bergin, RH Hall

Panel: Pat Ryan, Liffey Mills; Murtagh McWey, Glanbia;

Andrew Fogarty, Odlums; John Kelly, Delta Index;

Philip Doyle, Kildare grain farmer

5pm to 5.30pm Close of Forum - Jim O’Mahony, Teagasc

23/8/1017:09


dairyingTo

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MILK production is expectedto rise due to milk quota in-creases up to 2015 and theremoval of milk quotas after

this. Most of this increased production(DAFF targets a 50% increase by 2020)will take place on existing dairy farms.

Many dairy farmers are already plan-ning, and acting, to increasemilkoutput.This article looks at the process onefarmerhas gone through to create a planfor his farm.

Greenfield Dairy ProgrammeThere is no quicker way of going brokethan scaling up an inefficient system.Teagasc is fully committed to supportingfamily dairy farms to expand in a finan-cially profitable way.This is one of thereasons behind the establishment of theGreenfield Dairy Programme by Teagasc

in 2009. The programme includes:* Two family dairy farms, one inCo Tipperary (dry soil) and one inCo Waterford (heavy soil, high rainfall);*The Greenfield farm, Co Kilkenny; and* New entrants.

Very well attended farm walks tookplace on both the family dairy farms andthe Greenfield farm this year.

Creating a development planAdrian van Bysterveldt,Teagasc, out-lined the planning and prioritisationprocess at the farmwalkheldon the farmof Daniel and Amy O’Donnell, Cappo-quin, CoWaterford.The steps involved inthe process included evaluation of thecurrent position, development of a draftplan, identification of potential devel-opment options, selection of best optionand finalisation of plan, including prio-rities. Daniel and Amy were central tothe planning process; other resources,includingTeagasc staff, provided gui-dance and support.

ThetwoPs�Plann

SWOTANALYSIS: | O’Donnell Farm

STRENGTHS WEAKNESSESYoung farming couple High rainfall

supportive family Poor grazing infrastructure

Improving herd fertility

OPPORTUNITIES THREATSImprovement to soils Milk price

— P, K and lime Animal disease

Improved drainage

ABOVE:BillyMcCarthyofTeagascDungarvanand DanielO’Donnelldiscusscovers.

Tom O’Dwyer,ProgrammeManager, Dairying

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farm

Aughaloora, Kilnaleck, Co. CavanTel: 049 4336 231 Email: [email protected]

Working on some of the most profi table dairy

farms in Ireland

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086 85 40094 NOW MADE IN IRELAND

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All rights reserved

The First P: PlanningThe first step was to analyse theStrengths,Weaknesses, Opportunitiesand Threats (SWOT) to the business.

The bestway to do this is to simply listout the items under each heading. Behonest about the weaknesses/threatsand realistic about the strengths/oppor-tunities.

Once the SWOTanalysis was com-pleted, the team looked at the expansionoptions available, to take advantage ofthe strengths and opportunities and tominimise the weaknesses and threats.The resultwas twodevelopment options:*Expansion by using own resources andgenerating own replacements, and*Expansion funded by borrowed funds.

The second option would see a morerapid expansion of the herd but wouldlead to increased farm borrowings.

The couple decided the expansionshould be funded from cashflow, with noextra borrowings.

The selection of the ‘best option’ is animportant step in the overall process.The option selected must be the rightone for you and that you understand andare comfortable with the implications ofchoosing that option.

ning&PrioritisationTable1 | Drainage development options on O’Donnell farm

Map Ref. Description Problem Potential Solution PriorityF — G 95m existing Too shallow Deepen to at least 1

blocked open to provide 1m and remove

drain; good fall drainage willows

R — P 123m existing Upper parts Deepen to at 2

drain; good fall of drain have east 1m

filled in

Table 2 | Pasture development options on O’Donnell farm

Paddock Description/Problem Potential Solution PriorityPairc an Ti Poor pasture species, Lime, P, K and reseeding 1

poor growth

Six Acres Small area of soft ground but Open boundary drains 3

mostly poor pasture species; Lime, P, K before cultivation

last reseeded 2000 and reseeding

Table 3 | Infrastructure development options on O’Donnell farm

Map Ref. Description Problem Potential Solution Priority1 — 2 100m existing Unused and now Dig up and use 1

roadway in wrong place elsewhere

3 — 4 80m new roadway No access Use material from 1

required to Gurteens. 1-2 to complete

new roadway

>> Next page

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dairyingTo

day

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The plan outlined the requirements ortasks to be completed. But which tasksshould be carried out first andwhich leftuntil later? Failure to prioritise canthreaten the whole project. All require-ments and tasks are important (other-wise, they should not be included in theplan).

They are prioritised to deliver thebiggest benefits early or to give the bestreturn on the money being used.

For example, consider what:�Must be delivered, in the currenttimeframe, if theproject is tobeasuccess� Should be delivered, but not necessa-rily in the current timeframe� Could have this if it doesn’t affectanything else; sometimes referred to as‘nice to have’ but not absolutely criticalto the project success, and�Won’t (have but would like); least cri-ticalornon-appropriate itemsor tasksatthe current time.

Development plans were agreed fordrainage, reseeding and infrastructure.Thefirst step involvedmarkingona farmmap the current situation and the re-quired future improvements if addi-tional cows are to be carried on theO’Donnell farm.

Tables1,2and3 (on previous page) areexamples of the development plans. Thetemplate can be used for any farm. Afarm map showing current paddocks,roadways and drains is a necessarystarting point. Once the map is marked,it is easier to ensure that the mostimportant issues are tackled first.

Not all farms will require a drainagedevelopment plan, but on heavier soils itis essential that drainage issues aresorted before reseeding takes place.

In addition to summarising the de-velopment required for eachpaddockonthe farm,apriority in the firstyearwas tosoil sample the entire farm (21 samples)and to apply lime, P and K as recom-mended by the soil analysis results onthe main grazing area.

Finally, all of the development workswere summarised on a yearby yearbasisin the overall plan.This also included anestimate of the annual cost involved.

More replacements, more optionsToo few replacement heifers on dairyfarms in the past have led to the post-ponement of voluntary culling in an ef-

fort tomaintainherd size.Replacementsare now needed both to maintain andincreaseherd size.Themoreyoungdairystock on the farm, the more options youhave.You can decide to sell the surplusreplacement stock; this is quite a profit-able enterprise. Or, if you decide to ex-pand your dairy herd, you will have aready supply of homebred heifers to en-ter the herd.

There are big advantages to havingyour own stock from a biosecurity per-spective. A target of 45 heifer calves per100 cows milked is achievable, but againit takes planning and action. Daniel andAmy O’Donnell implemented an agreedplan in 2010 with the objective of getting30 high EBI replacement heifer calveson the ground in 2011 for 70 cowsmilked.Given recent breeding performance onthe farm, this is possible.

KEY MESSAGES | O’Donnell farm

* Planning and prioritisation arevital ifyouare to expand your herd success-fully.Thelevelofplanning,evaluationandprioritisationwhich took place on theO’Donnell farminthepast12monthswasclearly evident at the recent farmwalk.Dairy farmers can learn from this exam-ple, and others, when thinkingaboutgrowing their dairy farmbusiness.* Thisarticlehasnotexamined thecostsassociatedwith expansion. A full finan-cial projectionwas prepared for the de-velopment plan on the O’Donnell farm inCoWaterford.Teagascrecommendsthatboth a physical and financial plan beprepared forall developments plannedon dairy farms in the future.* If youwant further information on theTeagasc Greenfield Dairy Programme,checkout thewebsite:www.greenfielddairy.com

For someof Daniel’s fields, drainagewasnecessary before reseeding.

Teagasc is fullycommitted to

supporting family dairyfarms to expand in afinancially profitable way.This is one of the reasonsbehind the establishmentof the Greenfield DairyProgramme

MADE IT EASY TO USE - YOU MADE IT A SUCCESS!

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With over 2.5 million treatments sold in the UK and Ireland since its launch last autumn, has changed

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Reference: Norbrook sales data based on a 500kg dose.Please read the product data sheet and seek advice before use. The dosing programme should be established by a veterinary surgeon or suitably qualified person. Manufactured in NI by: Norbrook Laboratories Ltd, Station Works, Newry, Co. Down, BT35 6JP. Distributed in ROI by: Norbrook Laboratories (Ireland) Ltd, Rossmore Industrial Estate, Monaghan, County Monaghan. Legal Category: LM. Closamectin Solution for Injection for sheep contains 0.5%w/v ivermectin and 20%w/v closantel.

23/8/1017:12


dairyingTo

day

’sfarm AUTUMNGRASSLANDMANAGEMENT

Keepinggrass inthe dietofgrazingcows

DAYS are getting shorter andgrass growth is starting toslow down. Most farms willhave brought silage ground

back into the grazing rotation.This al-lows farmers to extend the rotation andbuild up grass in fields, in exactly thesame way as farmers build up the silagein pits over the summer. If cows are outgrazing in October and November, theyare not inside as much eating expensivesilage and meal.

A typical farm stocked at 2.5 cows perhectare (a cow to the acre) will have had160kg to 200kg of grass per cow acrossthe grazing area of the farm during thesummer until the end of July.

With silage ground available forgrazing, more grass should be available

per cow as the autumn proceeds.Targetautumn grass covers per cow at thisstocking rate are shown here:* 1August: 200kg DM/cow* Mid-August: 300kg DM/cow* 1 September: 400kg DM/cow* Mid-September: 450kg DM/cow* 1October: 400kg DM/cow

Note that average grass cover acrossthe farmshouldnotgoover1,250kggrassDM per hectare. Remember what thismeans; on many farms at lower stockingrates over the summer,1,250kg per hec-tare was what cows were being put in tograze.

If the average farm cover across theentire farmis thisheavy, somefieldshaveway too much grass and swards are rot-ting at the butt. It is not recommended totake out heavypaddocks for cutting onceyou go into September. Sward recoveryafter cutting in September is very poor.

The target cover at closing time iswhen the average cover across the farmfalls tobetween500kgand550kgDMperhectare.

Remember that the figures above arewhat’s recommended for farms stockedat 2.5 cows per hectare or a cow to theacre on the grazing area. If the stockingrate is heavier, it will not be possible tohit these covers, because there aremoremouths to be fed and less grass to spare.

For example, at three cows per hec-

tare on the grazing area, it will not bepossiblenormallyto getto 400kgDMperhectare in mid-September, and at 3.5cows per hectare, you will do well to getover 300kg perhectare by 15 September.Thismeans that less grass is built up andso cows must come in earlier.This typi-callyhappenswheremost of the silage iscut on outfarms and there is less oppor-tunity to bring in aftergrass or grazing inAugust.

Owen Cooney, Lisnabuntry,Virginia,is stocked at five cows per hectare on thegrazingplatform, sohewouldbeshortongrass for much of the year, not justaround now. However, he uses zero-grazing to bring home grass from out-farms for thedairy cows,whichmeans hecan effectively ‘graze’ the entire farmand, so, build up grass.

Like many farmers in 2010, RobbieWalker of Knocknaveigh,Virginia, CoCavan, cut silage in mid-August.Thismeans the cover on grazing paddocks inmid-August may not be as high as 300kgper cow. However, growth in August hasbeen good, so this is helping Robbie tocatch up. He had a rotation length of 25days in mid-August, which would be ontarget.His covers per coware tight, so hehas moved all non-milking animals toout-farms. He is also planning to sell cullcows now.This will leave more grass formilkers at home.

David ColbourneTeagasc Ballyhaise

Owen Cooneyand David Colbourne discuss grazingstrategy.

Owen Cooneyof Lisnabuntry,Virginia.

23/8/1017:12


Today’s

farm

AUTUMN GRAZING | pointers

* Keepgrassin themilkingcows’diet foras long as possible this autumn.* Allocate a portion of the farm forgrazingeach day.* Start closing paddocks from 5 to 10October.* Aimtohave60%farmclosedbytheendof the first weekofNovember (one to twoweeks earlier inwet areas).* Grazepaddocks tight, between 3.5cmand4 cm, toencouragewinter tilleringofthe grass plant.* Feedsupplements (forexample,meal,silage, cut grass), if there is insufficientgrass in the dailyallocation to stretchgrass rather than runningout sooner.* Skip heavier paddocks� andgrazepaddockswith ideal covers� tomeet60% target, if necessary.* Usewetweathergrazing techniques ifground conditions deteriorate.* Rotation length should increase from25 days inmid-August to 35 daysbymid-Septemberand45daysbythestartof thelast rotation.* Blanket spread the entire farmwith30ha/N before 15 September, wherepossible.* Inwet weather, don’t damage fields.On-off grazingwill allowgood grass in-takeswith limited damage to fields.

RobbieWalker of Knocknaveigh,Virginia,Co Cavan and David Colbourne assess grass quality.

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23/8/1017:13


Today’s

farm

JF Farm Machines (RI) LtdCollonbeg, Collon, Co. Louth, IrelandTel: 041 9819151 Fax: 041 9819699Email:[email protected] Web www.jf-stoll.com

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66ha of owned land comprising thegrazingplatform.Thebalanceof the landis leased. In 2009, meal input averagedless than400kgper cow. In2009, theherdaveraged just short of 400kg milk solidsper cow (4.19% fat and 3.56% protein)with a meal input of less than 400kgconcentrates per head. Empty rate was12% at the end of the breeding season.

Since then, herd size has increasedfrom 125 to 180 cows. At this stockingrate, he plans to produce 1,100 kg milksolidsperhectare.This spring,78%of theherd calved in the February/March per-iod.

At the open day on the Hyland farm,supported byTeagasc personnel, Damergroup members will present their viewson:* The efficient cow,* Grassland management,* Heifer rearing.

Table1 |Summaryscoresfor theDamerandCrookstowndiscussiongroupsintheACCBank competition

Crookstown Damer

Discussion group activity 100 100

Breeding quantity 95 100

Breeding quality 96 83

Profit/performance 82 85

Business case study 100 100

Total 473 473

Table 2 | EBI, milk and fertility sub-indices for the dairy stockon the Hyland farm

Number EBI Milk Fertility

Cows 180 113 41 61

1-2 yo replacements 81 122 54 64

0-1 yo replacements 110 143 48 75

Stocking rate 2.7 LU/ha

Don’t miss outon the

opportunity to get aclose-up look at thesetop class dairy farmsand to quiz someof thevery best milkproducers anywhere

23/8/1017:13


dairyingTo

day

’sfarm

Healthypeople,healthycowsChanging the balance

of fats in milk could

benefit humans, dairy

cows, and farmers,

who will have a more

valuableproduct tosell

at home and abroad

TEAGASCMoorepark aims toprovide a health boost forhumansanddairycows throughcattle breeding. By investigat-

ing, and potentially breeding for, differ-ent types of fat produced by dairy cows,researchers hope to increase the health-giving properties of milk for consumers.

The cow can benefit too becausestressful ‘negative energy balance’ inearly lactation seems to be related to thebalance of fats in hermilk. Reducing thetime a cow spends in stressful energydeficit would yield healthier cows thatproduce healthier milk.

‘‘Dairy milk contains saturated fats,which are considered less healthy, aswell as more beneficial unsaturatedfats,’’ said Sinead McParland. ‘‘Conju-gated Linoleic Acid (CLA) is an unsatu-rated fat inmilkwhichhasbeenshowntohave anti-cancer properties.’’

Theaveragedairycowproducesmorethan twice as much saturated fat as un-saturated and Sinead, together withcolleague Donagh Berry, hopes to findways to tip thebalance throughbreedingin favour of the more healthy fats.

The work is part of the Europe-wideRobustMilk project that brings togethergeneticists from six leading Europeanagricultural research institutes, in-cluding Teagasc Animal and GrasslandResearch and Innovation Centre,Moorepark.

The experiment involves collectingmilk samples from cows of several dairybreeds, including Holstein-Friesians,Jerseys, Normandes, Montbeliardes,dual purpose Belgian Blues andNorwegian Reds from Ireland, Belgiumand Scotland.

The objective is to find gene-basedtechnologieswhichmayenablebreedersto identify and breed cows that producehealthier milk, while the cows them-selves stay healthier. ‘‘Cows in negativeenergy balance �when they are usingmore energy than theyare consuming�

produce a higher proportion of the un-healthy fats,’’ said Donagh Berry. ‘‘Redu-cing periods of negative energy balancecould benefit the cowand the consumer.’’

The proportions of fat and protein inmilk are already estimated using infra-red spectrometry � shining lightthrough the milk � and this technologycan also be used to establish the majorfat types in a milk sample.Therefore, es-timatesof thedifferent fattyacidcontentof individual cows can be assessed on allsamples taken during milk recording atno additional cost.

‘‘We know there are large genetic dif-ferences among animals and, therefore,we can improve milk fatty acid contentthrough breeding. Milk quality could ul-timatelymake itsway into the EconomicBreeding Index (EBI) in dairy cattle,’’said Donagh Berry.

Teagasc Moorepark and the ICBFarealso considering a new project to createcomputer software based on the resultsof this study to help farmers make man-agement and breeding decisions to in-crease the value of their product.

Theyare also considering a project toensure that altering the milk fatty acidcontent does not change other qualityparameters of the milk itself, as well asthe performance of the cow.

ABOVE:The proportions of fat and protein inmilk are alreadyestimated using infra-redspectrometry� shining light through themilk.

LEFT:SineadMcParland saysmilk is set tobecomeevenhealthier.

Story & pictures: Mark MooreThis article is based on one which appearedin the Teagasc publication, TResearch.

By investigating,and potentially

breeding, fordifferenttypes of fat produced bydairy cows, researchershope to increase thehealth-giving propertiesof milk for consumers

23/8/1017:14

sheep


Today’s

farm

TaggingrulesEdward Egan, Teagasc,

Navan, Co Meath, explains the

tagging rules that apply to

sheep born after 1 January 2010

Lambs going for slaughterLambs going from farm of origindirectly for slaughter (in Ireland) beforethey are 12 months old should be taggedwith one conventional yellow tag in thesheep’s left ear by the time they are ninemonths old or when they leave the hold-ing of origin, which ever is first.This tagis called a slaughter tag.

White short-term concessionThe Department of Agriculture, Fish-eries and Food allows lambs going fromfarm of origin directly for slaughter be-fore they are 12 months old to be taggedwith awhite short-term tag or long-termtag.This temporary concession appliesuntil the farmer’s supply of these whitetags runs out, or until 31 December 2010,which ever comes first.

Lambs going to martsLambs going to the mart that are meantto be slaughtered before 12 months oldmaybe tagged with one yellow tag in theleft ear only; i.e. a mart tag.The yellowmart tag can be used instead of aslaughter tag to tag lambs going fromthe farm of origin to slaughter before 12months old.

Sheep kept for breedingSheep that are definitely being kept forbreeding must have one tag in each earby nine months old.That’s a yellow marttag in the left ear and ayellowelectronictag in the right ear.The serial numberon each of these two tags must match.

Sheep sold for breedingSheep definitely being sold for breedingshould be tagged with two tags by thetime they reach nine months old, orwhen they leave the holding of origin,which ever is first.That’s a yellow marttag in the left ear and an electronic tagin the right ear.

Sheep purchased for breedingSome farmers will buy a sheep under 12months old with only one conventionalyellow mart tag in its left ear. In this si-tuation, the buyer has two choices.Firstly, the original tag can be kept inthe left ear and a newelectronic tagwiththe same number as in the left ear can

be ordered.The second option is to or-der a pair of completely new tags withdifferent numbers to the original tag.That’s a new yellow mart tag and a newelectronic tag.The new tag numbersshould be matched up with old tag num-ber in the flock register.The second op-tion results in the sheep having threetags; that’s two tags in the left ear andone tag in the right ear.

Sheep for exportSheep born after 1 January 2010 goingfor live export must be tagged with twotags.That’s a yellow mart tag in the leftear and a yellow electronic tag in theright ear. Owners of sheep for live ex-port, purchasedwith onlyone yellow leftear tag, have two choices. Firstly, keepthe original tag in the left ear and ordera new electronic tag for the right.Thesecond option is to order a pair of com-pletely new tags with different numbersto the original tag.The new tag numbersshould be matched up with old tag num-ber in the flock register of the exporter.

One tag is lostIf a sheep born after 1 January 2010 iskept for breeding on the farm of originloses its electronic tag, i.e. right ear tag,a new tag with the original numbermatching the yellow mart tag still in the

left ear can be ordered. If a sheep losesits yellow mart tag, a new tag with theoriginal number matching the electro-nic tag still in the right ear can be or-dered. Alternatively, two completelynew tags with different numbers to theoriginals can be ordered. If this option isavailed of where the remaining tag iselectronic, this tag should be cut out, asan animal should not be tagged with twoelectronic tags.The new tags should bematched upwith old tags in the flockregister.

Red tagsIf a sheep that you brought on to yourfarm from another holding loses both itstags, and you cannot be sure of the hold-ing of origin, you should retag this sheepwith two red tags, also called replace-ment tags.

Blue tagsAruminal bolus fittedwith an electronicidentifier can be used instead of anelectronic tag.These sheep must betagged in their left ear with a conven-tional light blue coloured tag.

Sheep born before 1 January 2010Sheep born before 1 January 2010 mustbe tagged in accordance with the rulesthat applied at that time.

If a sheep bornafter 1January 2010 is kept for breedingon the farmof origin loses its electronictag, i.e. right ear tag, a new tagwith the original numbermatching theyellowmart tag still in the leftear can beordered.

23/8/1017:14


beefTo

day

’sfarm Sucklers

Moving fromaverageto the top10%

THE average suckler farmer, whohas been completing a profitmonitor over the last numberofyears, has been making a gross

margin per hectare of between €300 and€400, when no direct payments (SingleFarmPayment, REPS, etc) are included.

With overheads in excess of €400 perha on most beef farms, this means thatthe average suckling enterprise is notcovering its running costs and directpayments are used to subsidise it.

Completing a profit monitor to com-pare your farm with other farms, in bothphysicalandfinancial terms, isoneof thebest ways to identify its strengths andweaknesses.

Performance per Livestock UnitFigure 1 gives a summary of 258 profitmonitors, all taken from suckler farmsfor 2009, where they are compared firstof all on a livestock unit (LU) basis. Theresults are broken down on grossmargin per ha (excluding premia), ran-ging from the bottom 5% all the waythrough to the top 5%. Comparing thedifferent groups on a LU basis first is

very useful as it leaves out the stockingrate influence and shows the perfor-mance levels achieved from the cattlefarmed.

One of the striking things from thisgraph is that as you go from the averageall the way through to the top 5% ofsuckler farms, the variable costs per LUdo not change significantly.These costsinclude meal, fertilizer, contractor, vetand straw.

What does change, though, is the levelof gross output achieved per LU, risingfrom the average farm at €491 to €689 forthetop5%.Forthesameinputs therewasa 40% increase in output per LU.

Subtracting variable costs from grossoutput gives you your gross margin.Farms at the lower end of the graph hadhigher variable costs than their grossoutput, with the bottom third only justcovering their costs.The top 5% of farmsmake €200/LUmore than the average.

Performance per haFigure 2 shows the effect that stockingrate had on these farms and how a highmargin per LU is magnified by having ahigh stocking rate, resulting in an evenbigger difference in per-hectare mar-gins. The top 5% of farms achieved over€500extragrossmarginperhacomparedwith the average suckler farm complet-ing a profitmonitor. On a 50 ha farm, thiswould be worth an extra €25,000 eachyear.

Rising above the averageCompleting a profit monitor is only thefirst step. Using the information youglean from it to plan how you will riseabove the average is the crucial follow-on. A three-year plan, with goals andtargets to be achieved, is an excellentway of identifying where the farm needsto make changes.

Start by setting a goalAfter completing a profit monitor thenext step is to decide where you want toget to. Aim to be in the top 10%.Thiswould mean an average suckler farmgoing from approximately €300 to €750per ha gross margin (excluding premia),an increase of €450 per ha.

Pearse Kelly,Teagasc CattleSpecialist

Higherstockedfarms benefit

from rotational grazingsystems, morereseedinganda bettercontrol of the quality ofgrass offered to cattle

A three-year plan, with goals and targets to be achieved, is an excellent wayof identifyingwherethe farmneeds tomake changes.

23/8/1017:15


Today’s

farm

Increase gross output (€) per LUYour next step must be to achieve a highgross output per LU.This is affected bythe:*Number of calves per cow per 365 days* Tightness of the calving spread* Level of mortality* Growth rates of the progeny (influ-enced by breeding genetics, grasslandmanagement, level of perennial rye-grass in swards, soil fertility, mealfeeding rates, health, winter foragequality)*Sale price achieved per kg (influencedby the quality of stock)

The average gross output per LUwas€491 in the 2009 figures. An extra €90would get this figure into the top thirdandanother €70on topof thiswouldpushit into the top 10%.

For example, a farm sellingweanlingscould get an extra €100 gross output perLU by:* Selling an extra 0.05 calves per cowbred to the bull (that is an extra twocalves from a 40 suckler cow herd thatwas selling 34 weanlings per year)* Selling them 10% heavier than theywere sold (through better grasslandmanagement)* Improving their sale price by 10%through better breeding.

None of these increases in outputshould increase costs; in fact, some ofthem are likely to reduce costs.

On a farm bringing the progenythrough to beef, the carcase weights atsale will have a huge influence on theoutputperLU.Someof thehigheroutputper LU farms have moved to finishingbulls at high carcase weights at muchyounger ages than steers are typicallyfinished, allowing them to carry morecows at the same stocking rate and havemore carcases for sale.

Increase stocking ratesWhen a high gross output per LU can beachieved, the number of LU farmed perhawill be the next biggest influence on afarm’smarginperha.Not stockinga farmto its full capacity is the same as a hoteltargeting to fill only threequarters of itsbedrooms.However, farmswith lowgrossoutputs per LU should not increasestocking rates until the cause of the lowoutput per LU is rectified.

In the 2009 suckler figures, the dif-ference in stocking rate between the topthird and the average was 13%.The nextstep to the top 10% was an increase ontop of this of a further 6%.On a farmwith40 suckler cows, this would mean anoverall increase of eight suckler cows.

Increasing stocking rate does not al-ways mean calving extra cows. It may in-volve keeping progeny longer beforetheyare soldorbuyingdrystocktoadd toyour existing cattle for finishing.

Where gross margins are low and

there is conacre involved, the stockingrate can be quickly increased by drop-ping some or all of this rented ground.

Increasing stocking rate can oftenhelp to improve grasslandmanagement.Farms at average or below averagestocking rates find it difficult to controlgrass and will often use set stocking,carry out little or no reseeding and havevery little control over grass quality.

Higher stocked farms benefit fromrotational grazing systems, more re-seeding and a better control of the qual-ity of grass offered to cattle.

-200

1000

Figure 1. 2009 eProfit Monitor Analysis from 258 suckler farms

Bottom 5% Bottom 10% Bottom 33% Average Top 33% Top 10% Top 5%

-153 -100

15 181 293 367 383Euro

per

L.U

. per

form

ance

371 356

322310 284

285 306

217256

338

491578

652689

Gross marginGross outputVariable cost

-400

1000

Figure 2. Stocking rate affect on gross margins per ha

Bottom 5% Bottom 10% Bottom 33% Average Top 33% Top 10% Top 5%

-153 -100

15

181293

367 383

Euro

per

ha

perfo

rman

ce

-245-163

24

313

572759

847

1.63 1.62 1.52

1.731.95

2.072.21Gross margin/LU

Gross margin/haStocking rate (LU/ha)

IN SHORT | suckling

* Complete aTeagasc profit monitor toseewhere your current physical and fi-nancial performance lies.* WithyourTeagascadviser,setoutcleargoals for the next three years.* Identify four to five areas that need tochange on your farmand decideon thetargets that need to bemet each yearwithin the overall plan.* Output per LUshould be high beforemoving to a high stocking rate.* Constantlymonitor the progress youaremaking to ensure the targets youhave set are being achieved.* Review the plan annually with youradviserandmake changeswherenecessary.

23/8/1017:16


beefTo

day

’sfarm Decision

time forweanlings

WHATroad are you going totake with your 2010 weanl-ings � sell them on or fin-ish them to beef?With 56%

of the national 1.15 million suckler herdcalving in the first four months of theyear, it is now decision time on the ma-jority of suckler farms.

In September 2009 the CastleblaneyActive and Positive Suckler (CAPS) Dis-cussion Group met on the farm of PeterFitzsimons, Inniskeen, Co Monaghan.

Peter had produced top quality con-tinental weanling bulls but the weanlingtrade was poor. Discussion group mem-bers challenged Peter to finish theweanlings as bull beef himself ratherthan take poor returns at the mart. Sobegan the CAPS discussion group’s fin-ishing bulls versus selling weanlings ex-periment.

The CAPS Discussion Groupwas es-tablished in 2009 and nowmeets on thelastWednesdayofeverymonthundertheguidance of Mairead Kirk,Teagasc dry-stock adviser in Castleblaney.

The group’s 15 active members havesuckler herds which range from 10 to 80cows but all share the same goal of in-creasing profits through better farming.

They follow closely developments intheTeagasc BETTER farms sucklerprogramme and have been to visit localBETTER farmerWillieTreacy at Hack-ballscross. At each monthly meeting thehost farmer opensuphis ICBFHerdPlussuckler cowand beef calving reports, asthe group believes that efficient and ef-fective breeding are the cornerstones ofprofitable suckling.

Other topics such as grassland man-agement, silage conservation, rationformulation etc, are also covered whentopical.

CAPS member Peter Fitzsimons,farms 40 hectares (99 acres) of goodquality land in the heart of PatrickKavanagh country in Inniskeen, southMonaghan.

Suckler beef valuePeter runs a herd of 60 spring calving,exceptionally well bred Charolais andSimmental suckler cows. According tohis latest ICBF suckler cow report, theaverage suckler beef value for his cowsstands at a very respectable e105.

Replacements are bred from withinthe herd, usingAI Simmental sires, withhigh ICBFratings for daughter fertilityand milk. All other cows are bred to histop performing Charolais stock bull,‘Utah’.This impressive looking bull has asuckler beef value of e109 and five starratings for both weanling export andbeef carcase.

Grassland management is excellenton the farm, as Peter aims to offer cowsgood quality grass throughout the graz-ing season in the belief that milk supplyis the most important factor in maximis-ing weanling weights.

In 2009, bulls were weaned in mid-October and put into the shed on 10 No-vember at an average weight of 350kgs.They were offered good quality silagead-lib and fed 1.5kgs of a 14% crude pro-tein ration, with the aim of putting onframe prior to the intensive finishingperiod.

From early February (Table 1) theywere built up on meal to reach ad-libconditions of 14kgs meal per day by 26April and this feeding level was main-tained until slaughter on 7 June.

In the 208-day finishing period thebull weanlings gained 238kgs, giving anaverage daily gain of 1.14kgs/day overthe seven-month shed period.

This formidable performance meantthat the bulls were deemed fit forslaughter on 7 June, when theyaveragedjust 15 months of age.

All of Peter’s bulls graded U3 in thefactory and he received a price of 326c/kg, giving a return perbull of e1,151. It isworth noting here that when the CAPSDiscussion Group decided to try the bullfinishing route, they estimated a U3price of 350c/kg for Peter’s bulls in June2010, a clear indication of the fall-off infinished cattle prices in summer 2010.

After spending seven months in theshed, feed costs are the crucial factorwhen deciding the success or failure offinishing bulls. At costings of e25 pertonne for silage, e172/tonne for 14%crude protein ration and e180/tonne for12% crude protein ration, total feedcosts per bull came to e399.

Eachbullatehiswaythrough1,390kgsof meal, costing Peter e246. This is animportant cost to factor in at the start ofan intensive bull finishing programme,

All of Peter Fitzsimons’ bulls graded U3 in the factory. At 326c/kg, he got a return per bull of e1,151.

The overallconsensus of

the CAPS groupwasthat suckler farmersintending to go downthe bull finishing routewould need a forwardcontract from factoriesfor their finished bullsthe following summer

Mairead Kirk,Drystock Adviser,Teagasc,Castleblaney

23/8/1017:16


Today’s

farm

Table1 | Finishing Bull Diet

DATES NUMBEROFDAYS MEAL ANDSILAGE

Nov. 10th — Jan 31st 85 1.5kgs meal and silage ad-lib

Feb 1st - Feb 14th 14 3.0kgs meal and silage ad-lib

Feb 15th — Feb 28th 14 6.0kgs meal and silage ad-lib

Mar 1st — Mar 14th 14 7.0kgs meal and silage ad-lib

Mar 15th — Mar 28th 14 8.5kgs meal and silage ad-lib

Mar 29th — April 11th 14 11.0kgs meal and silage ad-lib

Apr 12th - April 25th 14 13.0kgs meal and 2kgs silage

Apr 26th — June 7th 42 = TOTAL 208 DAYS 14.0kgs meal and 2kgs silage

Table 2 | Finishing Bull Performance

Housing Weight on Nov 10th 350kgs

Total Weight Gain 238kgs

Slaughter Weight on June 7th 588kgs

Average Daily Gain (238 kgs/208days) 1.14kgs/day

Carcase Weight with 60% Kill Out 353kgs

Grade at Sale U3

Price Received c/kg (p/lb) 326c/kg (116 p/lb)

Price Received per Bull e1,151

Table 3 | Feed Costs per Bull

Silage ad-lib Nov 10th to Apr 11th 6 tonnes silage @ e25/tonne 150

Meal from Nov 10th to April 11th 620kgs 14% CP ration @ e172/tonne 107

2kgs silage/day April 12th to June 7th 104kgs of silage @ e25/tonne 3

Meal from April 12th to June 7th 770kgs 12% CP ration @180/tonne 139

TOTAL FEEDCOSTSPERBULL e339

PRICERECEIVEDPERBULL e1,151

MARGINPERBULL AFTERFEEDCOSTS e752

CAPS GROUP | conclusions

* The overall consensus of the CAPSgroupwasthatsuckler farmersintendingto go down the bull finishing routewouldneeda forward contract from factoriesfor their finished bulls the followingsummer.* The 350c/kg U3 price originally bud-getedforeachbullwouldhaveclearedanextra e85, perhaps enough tomake thebull finishingan attractive option.* Whenaskedwhat roadheis takingwithhis 2010 bullweanlings,Peter Fitzsi-monswasunequivocal in his answer:‘‘the road to themart!’’

as those reliant on merchant creditwould have a substantial meal bill tosettle at the end of the seven-month shedperiod.

At their most recent meeting, theCAPS group had a robust debate aboutthe experiment.The big question to beaskedwas:did thee752 margin after feedcosts justify finishing the bulls ratherthan selling them as weanlings?

If the weanlings had been sold in theback end of 2009 and made e2/kg, thenthey would have cleared e700 a piece. Anextra e52 per head for seven monthsextra work seems like a small return.

In addition, Peter Fitzsimons carriedthe risk of injury or disease striking thebulls over the longer term and paid sub-stantial meal bills before they were fin-ished.

The CAPSDiscussion Group, with facilitator Mairead Kirk,Teagasc,Castleblaney.Members of the group have suckler herdswhich range from10 to 80cows but all share the samegoalof increasing profits through better farming.

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23/8/1017:17


Today’s

farm

come in the December 2010 budget andin 2011.Talk to your accountant in goodtime and estimate your likely tax bill tofinalise 2009 andpay preliminary tax for2010.Planfor thisbill inyourcashflowforOctober/November 2010.

The normal deadline for tax returnsand tax payments is 31 October 2010 forself-employed taxpayers.

Thosewho file andpayusing theROS.(Revenue online) system get an extra 16days to complete their returns on or be-fore 16 November 2010.

The new income levyThe income levy is a new tax on grossincome first introduced from 1 January2009.The income levy was doubled andthe income thresholds were reducedfrom 1May 2009.

To simplify the application of the in-come levy to the self-employed, includ-ing farmers, the composite ratesoutlined inTable 1 apply for the full year2009. The rates of income levy for 2010are outlined in Table 2.

Important points to note re the in-come levy include the following:* Persons aged 65 and over are exemptfrom the income levy if they are underthe low income exemption (single per-son = e20,000/married couple= e40,000).*The income levy is payable on farmingprofits before deductions for capitalallowances or contributions to privatepensions in 2009 and 2010. However, for2010, farmers will be allowed to deduct

capital allowances related to expendi-ture on works associated with compli-ance with the Nitrates Directive.* Income from forestry and eligible long-term land leasing is exempt from in-come tax but is subject to the incomelevy.* No income levy applies on socialwelfare payments, including contribu-tory and non-contributory social wel-fare pensions.*The EU farmer’s retirement pension isexempt.* Deposit interest/credit union divi-dends subject to Deposit Interest Re-tention Tax (DIRT) are exempt from theincome levy (DIRT tax was raised from23% to 25% from 8 April, 2009).* Persons under 65 with incomes undere15,024 are exempt from the income levy.* Holders of full medical cards areexempt from the income levy.* Wages paid to hired labour or familymembers are also subject to the incomelevy, unless they are under the incomelimits.

Health levy changesThe health levy rates on income weredoubled from1May2009and the incomethresholds atwhich the rates applywerereduced. A composite special rate ofhealth levy was applied to the self-em-ployed and farmers in 2009 and the newhigh rate applies for the full year 2010(Table 3)

>> Next page

Table 2 | The income levy rates applying to income in 2010

Income levy threshold Rate of levy

(a) Income up to e75,036 2.0%

(b) Income from e75,037 to e174,980 4.0%

(c) Income above e174,980 6.0%

Table 3 | The health levy for 2009� self-employed composite special rate

Health levy threshold Rate of levy

(a) First e75,036 of income 3.33%

(b) Next e25,064 of income 4.0%

(c) Balance of income 4.167%

Health levy for 2010

(a) First e75,036 of income 4.0%

(b) Income above e75,036 5.0%

Table1 | Thenewrate self-employedcompositeannualised rates for the incomelevy in 2009

Income levy threshold Rate of levy

(a) Income up to e75,036 1.67%

(b) Next e25,064 of income 3.0%

(c) Next e74,880 of income 3.33%

(d) Next e75,140 of income 4.67%

(e) Balance of income 5.0%

23/8/1017:21


farmmanagementTo

day

’sfarm

When total income is under €26,000/yearin the 2009 and 2010 tax years, then thetaxpayer is exempt from the health levy.The PRSI (Pay Related Social Insur-ance) rate for self-employedand farmers(Class S) remains at 3% on all taxableincome. For employers/employees in thewider economy, the limit on income sub-ject to PRSI has been increased from€52,000/year up to €75,036/year since 1May 2009.

Off-farm incomesFarmers and their spouses whowork infull or part-time employment off farmalso pay the income and health levies ontheir gross earnings. Farmers’ spouseswho work in the public or semi-statesectors (for example, civil servants, tea-chers, nurses, etc) have to pay a new

pension levy contribution.This levyranges from 3% on income of €15,000 upto 8.1%on incomeof €65,000, andover 9%on very high incomes. It was introducedfrom 1 January 2009 and continues in2010.

Public sector wages/salaries havealso been subject to a new range of paycuts from 1 January 2010. Pay cuts andjob losses are also occurring in the pri-vate sector. Reductions in pay or loss ofoff-farm employment mean lower in-comesand, consequently, less incometaxfrom this source.

Health expenses reliefTax relief on allowable health expenseswasreducedfromthehightaxrateof41%to the standard rate of 20% from 1 Janu-ary 2009.This will affect families withlarge health bills. Nursing home ex-penses retain the 41% tax relief to theendof 2010andwill bekeptunder reviewuntil the new ‘Fair Deal’ financing sys-temfornursinghomecostshas settled in.Tax relief on medical insurance premiaremains at 20% in 2009/2010 and thisrelief is applied at source by the healthinsurance companies.

Private pension contributionsPrivate pension contributions are animportant method of saving tax forfarmers.However, confidence inpension

investments was severely dented by thedrop of approximately 35% in fund va-lues across the sector in 2008 due to thesevere economic downturn.

Growth has returned to the fundsthrough 2009 and into 2010 and abouthalf or more of the drop in fund valueshas been recovered.

Another positive angle is that invest-ments made into pension funds whenshare prices are lower will purchasemore units in the funds. Cashflow willcontinue to be restricted on many farmsin 2010 and this will reduce the scope forpension investment.

Also, farmers who invested substan-tially under the FarmWaste Manage-ment Scheme in 2007/2008will have newcapital allowances available to reducetheir tax bill in 2009/2010 and futureyears.This will reduce the need for pen-sion contributions.

Commission forTaxation proposals toreduce tax relief from a 41% tax rate to33%may be implemented for pensioncontributions sometime after 2010.

High earner’s restrictionThis restriction has been increased inthe 2010 tax year. Persons with incomesabove €125,000 per year (down from€250,000 previously) who benefit fromcertain specified income tax reliefs andexemptions will be subject to certain re-

Cashflowsandthe availability

ofcreditwill remaintightonmany farms sofarmers need to plancarefully tomeet theirtax bills on time

ABOVE:Farmers’spouseswhowork in the public or semi-state sectors (for example, civilservants, teachers, nurses, etc) have to paya newpension levy contribution.

RIGHT:Farmerswho invested substantially under the FarmWaste Management Scheme in 2007/2008 will havenewcapital allowances available to reduce their tax bill in 2009/2010 and futureyears.

23/8/1017:21


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strictions in order to affect a minimumtax yield from the taxpayer. Some verylarge farms with high profits and otheroutside income sources are likely to fallinto this category.

This is a complex area which shouldbe discussed with your accountant ingood time.

Changes in capital taxationA number of important changes havebeenannouncedinthecapital taxarea inrecent budgets.

Further changes which would reducesome of the reliefs available to farmerswere proposed in the Commission forTaxationreportofAugust2009andthesemaybe partially or fully implemented infuture budgets.The main points to noteunder each tax heading are summarisedas follows:* Stamp Duty�The top rate of stampdutyapplying tothe purchase/gift of commercial prop-erty and farmland has been reducedfrom 9% to 6% for transactions over€80,000 from 15 October, 2008.#�Family relief of 50% applies fortransactions between closely relatedpersons (consanguinity relief).� The 100% relief for young trainedfarmers under 35 years is extended to 31December 2012.�The stampduty relief scheme for farm

consolidation has been extended for twoyears to 30 June 2011.* Capital GainsTax (CGT)�Capital gains tax applies to gains onthe disposal (by sale or gift) of farmland,sites, investment properties, stocks andshares, etc.The rate of tax on capitalgains increased from20% to 22% from15October 2008 and from 22% up to 25%from 8 April 2009.�However, the size of capital gains willhave reduced due to the reduction in themarket values of land and property. Ca-pital GainsTax bills can be substantial ifapersondoesnotqualify for thevaluableretirement reliefs available to farmers.� There is now a windfall 80% capitalgains taxonthesaleofdevelopment landintroduced under the recent NAMAlegislation. It applies to disposals of landon/after 30October 2009where the landhas been rezoned since that date. It alsoprovides that the sale of once-off sitesunder one acre and valued at less than€250,000 are not subject to the windfalltax, but are subject to normal CGTrules.It isnotyet clear if theexemptionappliesto one site ormultiple sites;Revenueareexpected to clarify this soon.� Land disposed of by Compulsory Pur-chase Order (CPO) is exempt from the80% windfall CGT but is subject to nor-mal CGTrules.* Capital AcquisitionsTax (CAT)

�Capital AcquisitionsTax applies togifts or inheritances which a person re-ceives above the level of their tax-freethresholds and after any relevant reliefshave been taken into account.� CATrates increased from 20% to 22%from 21November 2008 and from 22% to25% from 8 April 2009.�Also, the amount a person can receivetax-free by way of gifts/inheritances hasbeen reduced by 20% from 8 April 2009and by a further 4.4% from 1 January2010, due to deflation.�However, the sizeof gifts/inheritanceswill tend to be lower now due to the re-duction in the market values of land andproperty, buttaxbills can still behigh if afarmer does not qualify for the variousreliefs available.

Tax planningFarmers should meet their accountantsearlyto estimate their likelytaxbills thisyear, while maximising the use of thevarious tax planning options.

In particular, check options underStock Relief and Capital Allowances forBuildings as these could change post2010 if Commission forTaxation recom-mendations are implemented.

The poor profits on dairy farms in2009will keepdown the ‘averagedprofit’and, therefore, the tax bill for those onthe income averaging system.

Despite improvements expected in2010 farm incomes, cashflow and avail-ability of credit is still tight on manyfarms and farmers need to make provi-sion for their tax payments.

IN SHORT | tax tips

* Farmincomesweredownin2008/2009but are likely to increase in 2010, whichleads to higher tax bills.

* Higher incomeand health levies andstatic tax allowances alsoput upwardpressure on tax bills.

* Cashflowsand theavailabilityof creditwill remain tight onmany farms sofarmers need to plan carefully tomeettheir tax bills on time.

* Farmers planning for retirement andasset transfers need to be awareof pro-posedchangestoAgriculturalReliefandCapital GainsTax Retirement relief andreliefs on sites to children as recom-mendedby theCommissionforTaxation.Any changes introduced in future bud-getswould havemost impact on biggerfarms.

* Theremay be further tax changesfollowing the December 2010 budget forimplementation in 2011.

* Meet youraccountant in good time for2010 tax planningand keep in touchwithrelevant tax issues.

23/8/1017:22


environmentTo

day

’sfarm An introduction to

cross compliance

The focus here is on Donegal but thechallenge is the same across the country.

All farmers in receipt of the SingleFarmPaymentareobligedtoadhereto18Statutory Management Requirements(SMRs), such as Animal IdentificationandRegistration andmust also maintaintheir lands in Good Agricultural and En-vironmentalCondition (GAEC).Together,these are commonly known as cross com-pliance.

2009 inspectionsAfull cross compliance inspectionmeansthata farmer is inspected forall 18SMRs,if they are applicable to the farm, andGAEC. In 2009:* 23% of farmers inspected under theNitrates category were penalised forinadequate management of manures,effluent and fertilizers.*25% of farmers inspected under AnimalIdentification and Registration werepenalised (15% for sheep; 10% for cattle).* 7% of farmers inspected under Pesti-cides were penalised.

Cross compliance in DonegalMartin McCullough,Teagasc Adviser,Carndonagh,Co Donegal.

DESPITE opinions to the con-trary, herd numbers are se-lected at random forinspection: indeed, a number

of farms inspected in 2009 were also vis-ited in 2010, even though there were noproblems on the farms in question.

DAFFmay give no notification at all,or up to 14 days, depending on the regu-lations being inspected.Notification canonlybegiven ‘where suchnoticedoesnotjeopardise the objective of the inspec-tion’. It is important that all records asrequired are maintained and availablefor inspection.

The main cross compliance issues af-fecting farmers in Co Donegal are:

Animal identification & registrationIn general, there is no problem with thetagging of cattle and the associated pa-perwork. However, the complete oppo-site is true for sheep, with some animalsfound not tagged as required and flock

registers not kept up to date. Ensuringthat the sheep census details are sub-mittedon time is increasingly important.

Land eligibilityThis will be the biggest problem areawith inspections in Donegal in 2010. Ir-respective of the gross area of a landparcel, the net area claimed must beutilisable for growing grass or crops. In-eligible areas, such as roadways, farm-yards, scrub and rock, must be deductedfrom the gross land parcel area. Over-claiming on individual land parcels canhave severe financial implications asDAFF is imposing retrospective penal-ties, goingbackto2005, onareas found tobe overclaimed in 2009/2010.

For lands to be eligible they ‘must besuitable for and compatible with thefarming enterprise’ and ‘there must beappropriate fencing for the farming en-terprise’.

Land eligibility can be a grey area forfarmers in the extensively grazed areasof Donegal. If a farmer has sheep andtraditionally farms open hill ground,

there should not be a problem with anyinspections. However, if the farmer hascattle only and it is obvious that theyarenot grazing these hill areas, problemswill arise: as one DAFFofficial stated,‘walkingaherdof cowsacross abog’doesnot make these lands eligible for pay-ments. Active farming must be carriedout, which consists of grazing or topping.

GAECPoor financial returns is leading to landbeing undergrazed or, in some cases, notgrazed at all.This gives rise to ‘landabandonment’ and the encroachment ofnoxious weeds, such as ragwort and

Tim Hyde,Teagasc Athenry

A full crosscompliance

inspectionmeans thatafarmer isinspectedforall18 SMRs and GAEC

23/8/1017:22


Today’s

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ABOVE:Harry Molloy (left) of Gleneely, Inishowen, withTeagasc adviser Martin McCullough ensur-ing that cleanwater fromroofs/yards is separatedand diverted to cleanwater outfalls.

LEFT: Inishowen countryside: goodgrazing land, unenclosed hill landand scrub areas.

scrub.The early stages of abandonmentcan occur where hedges are poorlymaintained and extending into the fieldand this could be considered a breach ofGAEC. In many extensive hill areas ofDonegal there has been an increase inthe amount of fern cover which directlycorresponds with the dramatic declinein hill sheep numbers.

DAFFwill deduct areas covered innoxious weeds, scrub or ferns from thatclaimedunless steps are taken to controlthem and sheep are grazing these areas.

Nitrates & farmyardsPollution from farmyards was never amajor problem in Donegal and the re-cent FarmWaste Management Scheme

has virtually eliminated any potentialproblems. Sufficient storage capacitycan still be a problem, however, as a six-month winter housing period is not un-common in Donegal and the NitratesDirective requires a 20-week storageperiod for all organic manures.

Farmerswho spreadorganicmanures(slurry, FYM, etc) during the closed per-iod will have a 20% penalty applied totheir SFP, DAS and REPS. Severalfarmers have been brought to court bylocal authorities on these issues andwere fined as well as the 20% penalty.

Gutters and downpipes must be inplace to reduce the volumes of farmwastes. All silage effluent and soiledwater must be diverted to tank storage.

Proper record keeping is vital forcross compliance purposes. In manycases, farmers have been submittingfertilizer records to DAFF following aninspection and dropped themselves in itbecause they spread too much fertilizerfor the number of animals on the farm.

Farmers who are not in REPS or whohave not had Nutrient ManagementPlans drawn up for their farmmay notknow what their fertilizer limits are.

The severity of penalties imposed forerrors made in completing nitrates re-cords means that farmers should seek

professional advice on the application offertilizers and the completion of nitratesrecords.

PesticidesAllpesticidesona farmmustbestored ina ‘dedicated, lockable and leak-proof ’container,andhaveawarningsignontheoutside indicating that hazardous che-micals are being stored.This does nothave to be an elaborate warehouse: alockable fridge will do or an old shedwith a lockable door and solid floor. Allchemicals must have a PCS number andbe on the approved current Irish list ofpesticides. Farmers are required to sub-mit records of sprays and crops toDAFFfollowing an inspection.These recordsare then examined forensically by theNational Pesticide Control Unit.

Animal feedAll animal feeds should be stored in se-cure, self-contained, vermin-proof units,with no dog food or similar materials inthe same vicinity.The corner of a work-shop is not suitable as feed could becontaminated with waste oils.The sto-rage area does not have to be an elabo-rate structure; for example, a coveredclean barrel will suffice for smaller op-erators.

IN SHORT | cross compliance

* Cross compliance is not easy.How-ever,Donegal farmers, and farmersacross the country, canmeet the chal-lenge and prevent severe financial pe-nalties being imposed.* Contact your local Teagasc office orthe DAFF website, www.agriculture.go-v.ieunder cross compliance, for furtherinformation.

23/8/1017:23


tillageTo

day

’sfarm Life after REPS ^ where

Mark Plunkett, soil specialistPaul Fox, B&T tillage adviser,Tullamore

FORmany tillage farmers, thecroppingyearof2010willbethelast year to grow crops undertheREPS regime.About 23,000

farmers will exit the scheme in the com-ing months.

The end of REPS has advantages anddisadvantages for tillage farmers.On theplus side, there is potential to increasecropgrainyields throughhigherusageofnitrogen fertilizers.

On the negative side, farm incomeswill be reduced significantlyand, inmostcases, this loss will not be fully offset bygreater crop yields.

Some farmers feel that life withoutREPSmeans life without regulation orrecord keeping.The reality, however, isthat all farmers must now comply withnutrient limits set out in the NitratesDirective.A farmfertilizerplanwillhaveto be prepared annually and must bemaintainedon farmforup to fiveyears tosatisfy farm cross compliance require-ments.

In addition, growers are required totest soil organic matter in continuoustillage soils to comply with Good Agri-cultural and Environmental Condition(GAEC).

The GAEC condition is set by the EUand requires that soil organic matter ismaintained through appropriate farm-ing practices.This means that continu-ous tillage soils (greater than six years)will have to be tested for soil organicmatter, 50% of soils tested by 31 Decem-ber 2010 and the remaining 50% testedby 31 December 2011. Farmers with soilorganic matter less that 3.4%must workwith their adviser to draw up a 10-yearorganic matter plan for the farm.

Eddie Molloy, a tillage and livestockfarmer on the outskirts of Tullamore, CoOffaly is coming to the end of his REPS3contract. Eddie and his family have par-ticipated in REPS since it was launchedin 1994.

On this farm, there was a tradition ofgrowing spring barley and sugar beet inrotation on the tillage area. In recentyears, spring barley has been the solecrop grown since the demise of the sugarbeet industry, and no obvious break cropwas identified.

Over the years of REPS, Eddie soilsampled the farm and followed recom-mendations in relation to fertilizer andlime applications.

Eddie’sREPS soil test results showedsoil phosphorus (P) levels at index 4 andsoil potassium (K)at index3 for the farm.Soil pHwas high (pH 7.4 to 7.9) with nolime requirements during that period.

The spring barley fertilizer pro-gramme consisted of three bags per acre

(370kg/ha) of 20-0-15 followed by CAN(27%N) as a top-dressing.

During the course of the REPS plan,Eddie expressed disappointment withspring barley yields, particularly in re-cent years.This could possibly be attrib-uted to the loss of sugar beet in therotation or the restricted nutrient usage(especially N & P) under REPS. In addi-tion, the soil pH on the farm is high andcould possibly be affecting soil P avail-ability and plant uptake during thegrowing season.

Fertilizer usageThe Irish Fertilizer Survey (2004 to2008) reports that P & K fertilizer usagehas declined by about 40% comparedwith 2003. Also during this period therehasbeenachange in fertilizer typeusagefromhighP&Kfertilizer types (0-7-30/0-10-20) to highN compounds, such as cut/pasture sward typeproducts.As a result,you would expect a decline in soil ferti-lity and in particular on REPS farms.

Changes in soil fertilityOver the last five years, Eddie hasomitted P fertilizer applications as soiltest results showed good baseline soil Pfertility levels. Over the coming months,the farm should be soil sampled for ma-jor soil nutrients and Iwould expect soilP levels to have declined over the last 10

years. A typical crop of spring barleyyielding 7.5t/ha (3t/ac) will remove ap-proximately 29kgP/ha and 86kgK/haannually.

Soil K levels maybe be similar as fer-tilizer applications and soil K releaseduring that period would have suppliedcrop requirements. Soil samples shouldbe takenoncecereal cropsareharvestedto check soil fertility levels and plan fer-tilizer requirements for 2011.

EddieMolloy’s tillage fieldsarealightto medium soil type and have beenploughedevery year since themid-1970s.Despite this, soil organic matter levelswere found to be between 4.5% and 6%following a recent test. No remedial ac-tion is required on these soils as resultsare above the 3.4% soil organic matterthreshold value.

Once cereal crops are harvested, takesoil samples for SOM analysis and, for asmall extra cost check, soil P, K, Mg, pHand lime requirements.

Changes after REPS1. Additional N on spring barley. Un-

der Nitrates Directive, the Nallowed forspring barley is 135kgN/ha or 108 unitsper acre.

2. Phosphorus and potassium adviceshould be based on new soil test results.

3. A fertilizer plan must be drawn upannually and maintained on farm to

Eddie Molloy, his daughter Aisling and Paul Foxexamine a barley crop.

23/8/1017:23


Today’s

farm

meet farm cross compliance require-ments.

4. Soil organicmatter levels should betested to satisfy GAEC requirements.

Now is a good time to contact your lo-cal Teagasc adviser to take fresh soilsamples. It will show how soil fertility le-vels mayhave changes on your farm overthe last five years of the REPS plan.Thiswill provide up to date information onthe soil’s fertility status and reliable in-formation to plan fertilizer and lime ap-plications.

Update on P & K researchA number of trials are being conductedboth on spring barley and winter wheatto examine the crops response to P &Kapplications for crop yield.

Trials are being conducted as part ofthe Agricultural Catchment programme(ACP) and tillage BETTER farms pro-gramme.

This work will be welcomed by thetillage sector as fertilizers nowmake upto 50% of total variable costs. Dr DavidWall, ACP researcher, said: ‘‘Phosphorusis a keynutrient in cereal production butoptimum use is critical to protect theenvironment and the profitability ofcereal production’’.

Results from these trials will beavailable over the coming months andtrials will be run again in 2011.

The best time for taking soilsamples is September to De-cember. Ensure that there areat least three to six monthsbetween sampling and the lastP & K applications.

Take soil samples undergood soil conditions to ensuresoils are sampled to the cor-rect sampling depth. Soilsshould be sampled to a depthof 10cm (four inches).

The correct sampling depthis very important to ensureaccurate soil test results. Thisis especially true for P ingrassland soils as the P tendsto be in the top few centimetresof soil.

Incorrect sampling will re-sult in inaccurate soil testresults coupled with poor nu-trient advice. This is moreimportant now as P applicationis restricted due to nutrientlegislation on farm. Good soilsampling will ensure good soiltest results.

For reliable soil test results,take a representative soilsample every 2ha to 4ha andtake a minimum of 20 soilcores per soil sample.

now for soil fertility?Good soil sampling = good results

All farmersmustcomplywithnutrientlimits setout in theNitratesDirective

23/8/1017:24


machineryTo

day

’sfarm Costor

benefit?

MACHINERY is an importantinput on most farms withconsiderable costs and ben-efits associated with its use.

All farms should regularly analyse theirmachinery costs and machinery options.

The importance of machinery de-pends on your farming system. Mechan-isation is central on tillage farms, wheredevelopments in size and capacity havefacilitated the scale and labour effi-ciency of modern arable units.

While dairy farms may have a lesserneed for tractor operations, mechanisa-tion of themilking task has allowed scaleto be achieved. Although some drystockfarms operate with minimal mechanisa-tion, silage-making and feeding areusually significant costs.

Machinery costs are always substan-tial. On dairy farms, the 2009 NationalFarm Survey indicates that the averagespend on machinery (depreciation, hire,and operating costs) was E17,557 peryear, or E370/ha, which equates to 30%of the direct and machinery costs.

The spend on drystock farms wasE5,607, or E210/ha, which is 44% ofdirect costs. On tillage farms, the annual

spend was E20,275 or E357/ha whichaccounts for 44% of direct plus ma-chinery costs.

Likeeveryother input, therearecostsand benefits associated with machinery.These can be difficult to value however.Where a contractor is used, the cost is

simply the charge.Where the machine isowned, the cost elements include de-preciation, interest, repairs and main-tenance, fuel, labour and insurance.

While the National Farm Survey fig-ures quoted above are reliable as a largenumber of farms are surveyed, farmma-

Calculating machine costs is not easy, yetcost estimation is essential for good ma-chinery decisions. The Oak Park machinerycost programme estimates depreciation,interest and repairs, over a machine’s lifebased on: machine type, use level, purchaseage (new or secondhand) and replacement(trade-in) age. In Figure 1, the effect of uselevel and replacement policy on tractor costsis shown. The hourly running costs (ex-cluding fuel and labour) for a 80kW (108hp)tractor are compared at two annual uselevels and two purchase policies.

With 600 hours’ annual use, purchasingnew and replacing after 10 years gives anhourly cost of e11.85 + fuel and labour.Purchasing a second-hand tractor at fiveyears old and replacing 10 years laterreduces the costs toE7.93/hour. With higheruse levels, hourly costs drop to E8.91 andE6.73 respectively for the two purchasingstrategies. Where annual use levels are low,purchase of new tractors with relatively shortreplacement strategies will incur high costs.

0

2

4

6

8

10

12

14

SH1000N1000SH600N600

Figure 1: Effect of use level and replacement policy on tractor cost

Cost

\hr (

€)

11.85

7.938.91

6.72

Purchase age and use level

Dermot ForristalTeagasc,Oak Park

Tractor cost examples

Dermot Forristal discussesmachineryreplacement strategy with Pat Doyle.

23/8/1017:25


Today’s

farm

chine costs can vary widely from year toyear and from farm to farm.

Cost elements vary over the life of amachine with annual depreciation de-cliningasamachinegetsolderbutrepaircosts increase.

The benefits ofmachinery can also bedifficult to quantify.While labour substi-tution is obvious, timeliness is the criti-cal benefit for many operations such asspraying, sowing, silage harvesting, etc,i.e. getting the job done at the right time.

There are significant quality aspectsto machinery operations also. Somema-chine types can do better quality workthan others. Machines can eliminatedrudgery and make the farmers taskseasier and more comfortable. Calculat-ing the monetary value of some of thesebenefits can be difficult. Farmers havevery different views of what values theyattribute to comfort and elimination of‘hardship’.

Machinery choicesFactors to consider in evaluating youroptions include:*Amount of work you have available forthe machine.* Labour/time available to operatemachine and its cost.* Cost of each option (e.g. ownership)versus the alternative (e.g. using acontractor).* Availability of alternatives.

* Quality/timeliness impact of choice.* Your mechanical ability/interest inmachinery.*Existing complimentarymachinery onyour farm.

Cost is a critical factor.Frequently,wecan allow our own preferences to alterour judgment � sometimes with disas-trous results.

For example, if a grower wants to jus-tify machine ownership on small workareas, it is tempting to over-estimate thelosses that may arise from a contractorbeing delayed.

Equally, some farmers who see anymachine ownership as an affront to low-cost production may endure excessivepersonal hardship when a modest ma-chinerycost couldmake lifemuch easier.A balanced view, coupled with an accu-rate assessment of costs, is essential forgood decision-making.

The options which farmers have forany machinery operation include:* Machinery purchase or alternativesuch as contractor use; machinerypartnership with neighbour; machinerental/hire, etc.* Where machine purchase is chosen,decisions on the following are neces-sary:

�Size/capacity of machine and itsspecification

�New or secondhand�Age at purchase and replacement

Have a planEvery farm should have a plan for itsmechanisation supply. Unfortunately,many purchase decisions are made withlittle thought, particularly if a machinehas a serious breakdown.

The first reaction is to replace it withsomething similar. More worryingly,many farmers tend to upgrade to thenext size of machine or the latest in-creased specification without consider-ingwhether thefarmcanjustifytheextracosts.

Agriculture continues to change andmachinery continues to develop; it’s im-perative that farmers plan their me-chanisation policy carefully and avoidmaking purchase decisions in isolation,or in haste.

Awell thought out plan which con-siders all the factors mentioned above,including alternatives to ownership, isan essential step in arriving at good de-cisions.

The importance of not purchasing ma-chines in isolation can be illustrated by thefollowing example. A dairy farmer with a75kW tractor needs to replace an old 1,600gallon slurry tanker and decides to upgradeto a recessed-wheel type to reduce groundpressure. With the extra investment re-quired for this type of tanker, he decides togo for the biggest possible capacity andchooses a 2,250 gallon model.

The extra machine and slurry weightadds an extra 4t compared with the originaltanker, causing the 75kW tractor to strug-gle on anything other than level groundconditions. With little further thought, thefarmer then decides to replace his tractorwith a 100kW (135hp) model to handle thetanker. The fitted tractor loader is alsoreplaced.

There are many problems with thisunplanned approach. The change of slurrytanker was justified but the temptation to gofor extra capacity brought on a steepincrease in tractor costs as: the replace-ment age was shortened; a larger tractorwas purchased and extra loader costswere also incurred. More careful planningin advance of the slurry tanker replacementwould have determined whether the extramachinery investment is worthwhile. In thiscase, if there was no other benefit in havingthe larger tractor, a smaller tanker mayhave been the better option.

Matchingmachines

CONCLUSION

* Machinerybringscostsandbenefits tofarmswhich are frequently difficult tovalue.Cost analysis is essential andalogical planningapproach is necessaryto ensure that the right mechanisationoptions are chosenonyour farm.

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23/8/1017:27


botanic gardensTo

day

’sfarm

Putting thebuzz back in gardening

NOT that long ago I remember,when driving in the country-side on a summer’s night, see-ing a ‘snowstorm’of moths

caught in thecar’sheadlights. If you leftawindowajar, with a light on inside, youwere greeted with a multitude of mothson the ceilingwhen you returned.Not so,any longer.Where have they gone?

Therehasbeenadramaticdrop in thenumber of insects in the past few dec-ades; the population decline in insects isnow greater than in any other group ofliving things.The bumble bee popula-tion, which plays such an important rolein plant pollination, has dropped 50%over the last 20 to 30 years in farmlandareas of Ireland, according to a recentstudy.This loss is further increased asmanyof these insects provide a rich foodsource for many of our common smallbirds, including that voice of spring, thecuckoo

The United Nations has designated2010 as the International Year of Biodi-versity, so perhaps it is timely to seewhat we can do, even in a small way, tohelp stem this alarming tide of speciesdecline. What could be more rewardingthan to help some of nature’s most eye-catching and beautiful creatures, our

butterflies and moths, and entice themback into our own private garden spaceto feed, hibernate and breed?

Hours of delight can be spent watch-ing them flit from flower to flower in thesummer garden.

To encourage these creatures you ba-sically need to provide shelter, warmthandplants rich innectar.Don’t have yourgarden excessively neat and tidy butleave some wild areas if possible. Beau-tiful butterflies, such as the Red Admir-al, Peacock and Small Tortoiseshell,breed exclusively on common stingingnettle, particularly if it is growing in asunnysite.Remember, aweed is simplyaplant growing in a place you don’twant itto. A log pile in a shaded part of the gar-

den can also be used by Peacock butter-flies to hibernate.The less hard surfacein your garden and the more plants thebetter.

Butterflies andmoths visit gardens todrink nectar from flowers.Therefore,grow as many nectar-rich floweringplants as possible, especially in a shel-tered, sunny spot, and keep them wellwatered to increase nectar release,especially in dry conditions.

One of the best shrubs to grow is the‘Butterfly Bush’Buddleia, which comesin a range of colours from many shadesof blue to intense magenta. Plant in asunny place and it will act as amagnet tobutterflies by day andmoths by night. InMarch, prune your Buddleia vigorouslyto almost ground level for best results.

Other good butterfly plants includetheWhite Escallonia (Escallonia bifida),if you can get your hands on it,Lavender, Hebe, the Ice Plant (Sedumspectable), ‘Butterfly Blue’ Scabious(Scabiosa), Butterfly verbena (Verbenabonariensis), Purple Cone Flower (Echi-nacea purpureae), Pincushion Flower(Knautia macedonica), Michaelmas Dai-sies (Aster), and Eupatorium purpur-eum, if you have the space for it. Alsogood for insects are the following herbs:mint, chives, thyme, valerian and mar-joram (Origanum).

Gardening to attract butterflies,moths and other beneficial insects canbeeasy, inexpensiveandvery rewarding.

An occasional series by expertsat theTeagasc college at

the National Botanic gardensaimed at adding to the

appearance and value ofyour farm

Pat Leonard,Botanic gardens

Gardening to attract butterflies, moths and other beneficial insects can be easy, inexpensive and very rewarding.

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To find out more visit www.bayercropscience.ie or contact your advisor.Firebird® is a registered trademark of Bayer and contains flufenacet and diflufenican.Plant protection products help quality and yield. Use only as directed.©Copyright BayerCropScience 2007.

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Today's Farm Sept-Oct 2010