Rising input prices could drive silage costs on farms to record levels this year.
Excessively high fertilizer, fuel and plastic prices can push silage costs to more than €30/bale (excluding land costs), further fueling high inflation in farm inputs into 2022.
Association of Farm and Forestry Contractors in Ireland (FCI) released the contractor fee guide in January and fear it may be out of date.
FCI CEO Michael Moroney said: “No contractor in Ireland is looking forward to this year’s silage season.
“Not just one thing has increased, but one by one. Take for example a green diesel engine. It cost me almost 5,000 euros to fill up my 10,000 liter tank two years ago.
“This year, to fill that tank, I have to pay 10,000 euros. My diesel costs alone have increased by more than 100pc. ”
FCI has guided €15-€16/bale, excluding plastic, for cutting, bale and wrapping, but Mr Moroney says these numbers are outdated and the real costs could be much higher.
“We made that list of costs in November/December and released it in January of this year, but we’ll probably have to change the figures again because of the cost of everything from plastic to diesel. and parts have increased too much compared to the past time. weeks,” he said.
“And anything can happen before the silage season. The cost could be even higher – nobody knows.”
Fertilizer costs are estimated at €7-€7.30/bale, with urea prices currently trading at €930-€970/ton. Meanwhile, the cost of slurry is also expected to increase this year to around €3 – €3,60/bale. Add to that the increased prices of wrappers, valued at up to €4/bale this year, with roll plastic trading anywhere between €100-€120.
Farmers will also need to allow €1 to €2 to bring in packages, etc. to transport or use diesel/own transport, etc.
Teagasc beef expert Aidan Murray tells Independent farming farmers “will have to silage this year,” but they can minimize their tolerance for high prices.
“Farmers should consider stocking up on silage as much as possible this year to reduce the amount of silage that needs to be harvested,” he said. “Even though the ground conditions are currently poor, especially in the West, farmers should take advantage of every opportunity to buy.” Slurry is another area where Murray says farmers can save,
emphasizes “every 1,000 g of manure is worth around €40 from a fertilizer point of view”.
He also encouraged farmers to use urea-based nitrogen (N), adding that “per kilogram, this is the most cost-effective source of N this year.”
https://www.independent.ie/business/farming/news/contractors-fear-silage-costs-may-hit-record-levels-41396052.html Contractors fear silage costs could reach record levels