This article is from page 71 of the 2008-05-27 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 71 JPG
TEAGASC claimed last week that the increased cost of artificial ferti- lizer this year 1s impacting on farm- ers’ profit margins and could squeeze many Clare farmers off the land. Depending on stocking rates the higher cost of fertilizer in 2008 could increase production costs by up to €50 per hectare on beef farms, or up to €100 per hectare on dairy farms. This increase is the equivalent of 0.75 cent per litre of milk or 16 cent per kilogram of beef live weight. “Even though production costs have increased grass remains the cheapest form of feed on dairying and drystock farms, and nitrogen
remains the main driver of yields. On tillage farms, even at current fer- tilizer prices and based on expected grain prices, applications are justi- fied economically,” said Teagasc en- vironment specialist Tim Hyde.
Changes in the price of fertilizer have implications for usage and the management of other valuable nutri- ent sources such as slurry on farms. These changes have refocused at- tention on the benefits of clover as a source of nitrogen. In monetary terms a thousand gallons of slurry is now worth €25, while clover can fix nitrogen to a value of €120 per hectare.
Among the factors to be consid- ered when responding to the change
in fertilizers prices is the enterprise type and the level of efficiency. On farms fertilizers, particularly nitro- gen, drives farm output, and used ef- ficiently also drives profit.
Nitrogen is the main determinant of high yields and artificial fertilizer sources should only be reduced be- low crop requirement if it can be re- placed by alternatives such as clover swards and organic manures.
“While the increased cost of ferti- lizer will add €10 per head to feed costs associated with a winter fin- ished animal on good grass silage plus concentrates an intensive feed- ing system based on concentrates would only become more competi- tive, if concentrate prices dropped by
€80 per tonne,” said Siobhan Kavan- agh, Teagasc nutrition specialist.
In relation to tillage crops, nitrogen fertilizer prices would need to rise, or grain prices drop significantly, before current nitrogen application rates would not be justified econom1- cally.
“Despite dramatic increases in prices fertilizer applications remain a cost effective input for profitable crops.
“With current fertilizer nitrogen prices and the projected price of grain the economic optimum for cereal crops has not changed and is similar to that of 2007,” said Teagasc soul and plant nutrition specialist Mark Plunkett.