Silage season may be just around the corner, but many farmers at Ballinasloe Mart in County Galway were talking more about rising costs than rising grass this week.
With the government Fuel subsidy plan Applications opened on Tuesday (April 5), and there was no shortage of discussion about the expenses around the arena.
Agriland I caught up with some Ballinasloe market leaders to hear their views on rising input costs, the impact the subsidy system could have, and concerns about the cost of making feed this year.
For many farmers, the sharp rise in diesel prices remains a major concern ahead of the busy summer period.
One farmer said the fodder season would be “bad, the way things are” in the wake of the conflict in the Middle East.
“The fuel drove everything crazy,” he went on to say.
While some market leaders welcomed the government support package when spoken to AgrilandOthers wondered how much impact this would actually have on ordinary farmers.
One market leader described the fuel containers as “just a drop in the ocean.”
“It’s like handing out some candy to keep the kids happy for a while,” he said.
“In the long term, they will have to offer something tangible.”
The same farmer said the government needs to go further on reducing fuel-related costs.
“They should get rid of the carbon tax and reduce tariffs,” he suggested.
Some farmers believe that the fuel subsidy scheme may benefit contractors, but will not be a significant reward for small farmers.
“The contractors will help, but it will not affect the common man much,” a market attendee commented.
Another farmer felt the package could help, but only if the savings were passed on.
“Contractors need it and it might be good for them if they pass it on.
He added: “But surely, will they do that? Contractors bear huge expenses, as do farmers.”
Silage season
With the fodder production season approaching, farmers also stressed that contractors will have no choice but to pass on the increased costs to customers.
“For silage cutting, contractors will have to raise their prices.
“The price of bulk feed is between 10 and 15 euros per tonne, and the price of round bales has also increased,” another farmer said. Agriland.
Likewise, another farmer said he also expects pit silage this year to become very expensive.
“Some guys talk about pit feed being 200 to 250 euros per AC.
“It’s mental, I don’t know how it’s going to be done, but it has to be done,” one farmer admitted.
Others at the market stressed that rising diesel prices are impacting every aspect of the silage industry.
One farmer explained: “Once the price of diesel goes up, it affects everything.
“It affects raw materials; the higher cost of oil and plastic will lead to higher prices for silage wraps as well.”
One young farmer noted that the pressure is already being felt strongly on farms, which are trying to keep machinery running.
“We have three machines in our house now, and it’s hard to keep everything full; it’s going to be tough this year,” he said.
Fixed rate changes
Moving away from the high costs of inputs and silage making, the new changes in Fixed prices A discussion of non-VAT registered farmers selling livestock at markets also emerged as a major point of discussion among attendees.
Although the new changes were introduced at the beginning of the year, many farmers are now starting to feel the real impact on their profits when selling livestock.
“It would be very expensive to sell livestock in the markets now, it is,” noted one market leader.
“When you sell 20 or 25 head of cattle, almost every single one of them goes towards the cost of selling them.”
Another farmer warned that these new changes could push more cattle straight into factories than into markets.
“VAT on sales has risen ridiculously, which is not helping the situation in the markets.
“People will now go to the factory and the factory will laugh because you don’t have the same stops there compared to the market,” the farmer said.
