John Joyce: Tips to keep input costs under control

This time last year, no one could have foreseen the imminent rise in input costs.

Some agricultural products have increased in value, but outside of dairy farming, the price has come a long way from covering the additional production costs that we have incurred.

This became all too clear when, shortly before Christmas, the last farm bills for the last balance sheet adjustment were paid.

So this year I need to stabilize the ship and keep the inputs and services in check.

We will continue to buy the goods we need for the day to day running of the farm as cutting back on farming can be a disaster in both the short and long term.

But we need to be aware that this is a business we run and we need to be more progressive in ordering inputs – maybe buy some up front and just order the quantity we need with minimal waste.

Another option is to increase the price and get the best possible deal. This is often done in non-agricultural businesses, where they may collect three bids before completing a deal to purchase goods or services.

It’s something I’ve never liked doing – I tend to stick with companies that give me good service and won’t let me down. But over the next few weeks I need to sit down with a pen and paper and make a farm spending plan for the year so the spending doesn’t get out of hand. I have to budget as best I can.

There was a time when it was all about being a good farmer and working hard, but now the paperwork and managing the money side of the business are just as important.

Also in 2023 we hope to be able to return to our overseeding plan. Last year I didn’t work a field because due to the lack of grass and drought I decided I couldn’t afford to take it out of production.

With fertilizer costs soaring and no sign of going down, making sure every field reaches its potential has never been more important.

We will reserve the two poorest fields in the next few weeks. One will hopefully be sown again in the spring and the other in the fall, everything is going according to plan.

I have a field in mind that needs plowing and leveling as it has never been reseeded. The other is a good silage field where the grass has just run out and needs replacing; hopefully it will only be switched.

I will be taking some soil samples over the next few weeks and this should help in deciding on these two fields.

I also want to get the pH right in most of the fields. This could mean spreading some lime. Fertilizer is better utilized.

Some would argue that the cost of overseeding is very high, which it is, but it really pays off in the long run.

If I’ve learned anything from 2022, it’s to keep an eye on costs and make more decisions sooner rather than later — particularly around when to sell stocks and maybe redeem them a little earlier and lower the overall cost of holding them.

John Joyce farms at Carrigahorig, Nenagh, Co. Tipperary