Saturday 26 May 2012
Headlines
Did you find this story interesting? (0) (0)
14/07/2008 13:18:09
Farming industry reeling as key input costs double
As rising forage costs threaten to undermine the profitability of the agricultural industry, farmers and growers must ensure they get the most out of their resources, says ADAS.
The leading environmental consultancy has warned that farmers margins are being squeezed by escalating fuel, feed and fertiliser prices, along with increases in other input costs brought about by rising oil prices.
Diesel oil, which the agricultural industry is heavily dependent on, has risen from approximately 40p to 70p per litre in the last 12-15 months, while compound feed prices have increased from approximately £140 to £220 per tonne in the same period. In line with rising oil and energy prices, Nitrogen fertiliser costs, previously £130 to £150 per tonne in 2006/7, will have hit £350 per tonne and above this summer.
Aled Roberts, ADAS senior consultant, said: "The rise in global commodity prices is having a severe impact on the farming industry and farmers and growers are being forced to radically review their practices. They have to ensure that they maximise their available resources.
"One key area is fertiliser and nutrient usage. Until now, very few farmers have actually reviewed the yields of grass against the quantity and quality of fertiliser utilised. A knee-jerk reaction to the rising prices has simply been to reduce fertiliser usage.
"ADAS research has shown that forage may no longer be the most cost-effective source of feed at high Nitrogen use level. As fertiliser prices continue to rise, and taking into account machinery, labour and fuel costs associated with conserved forage, farmers are looking at diminishing returns with some other feed sources becoming comparatively cheaper."
The research also found that up to 40 per cent of forage matter is wasted on a routine basis. "This is a key area to address," says Aled. "An increase in utilisation of 10 per cent in a grazing regime at 300kg of Nitrogen per hectare could reduce dry matters costs by up to £10 per tonne."
Farmers can tackle the rising costs of Phosphate and Potash fertilisers by reviewing soil nutrient status and utilising Phosphate and Potassium in home produced farm wastes, such as slurry and farmyard manure, more effectively.
Aled encourages farms with lower stocking rates and Nitrogen inputs below 100kg per hectare to maintain grass swards with good clover contents. "Swards with clover content of 17 to 30 per cent are capable of producing similar yields of dry matter to a system receiving 200kg of Nitrogen per hectare. Using a red clover system, even higher yields of forage can be conserved, although the persistency of red clover falls within two to three years of sowing."
The leading environmental consultancy has warned that farmers margins are being squeezed by escalating fuel, feed and fertiliser prices, along with increases in other input costs brought about by rising oil prices.
Diesel oil, which the agricultural industry is heavily dependent on, has risen from approximately 40p to 70p per litre in the last 12-15 months, while compound feed prices have increased from approximately £140 to £220 per tonne in the same period. In line with rising oil and energy prices, Nitrogen fertiliser costs, previously £130 to £150 per tonne in 2006/7, will have hit £350 per tonne and above this summer.
Aled Roberts, ADAS senior consultant, said: "The rise in global commodity prices is having a severe impact on the farming industry and farmers and growers are being forced to radically review their practices. They have to ensure that they maximise their available resources.
"One key area is fertiliser and nutrient usage. Until now, very few farmers have actually reviewed the yields of grass against the quantity and quality of fertiliser utilised. A knee-jerk reaction to the rising prices has simply been to reduce fertiliser usage.
"ADAS research has shown that forage may no longer be the most cost-effective source of feed at high Nitrogen use level. As fertiliser prices continue to rise, and taking into account machinery, labour and fuel costs associated with conserved forage, farmers are looking at diminishing returns with some other feed sources becoming comparatively cheaper."
The research also found that up to 40 per cent of forage matter is wasted on a routine basis. "This is a key area to address," says Aled. "An increase in utilisation of 10 per cent in a grazing regime at 300kg of Nitrogen per hectare could reduce dry matters costs by up to £10 per tonne."
Farmers can tackle the rising costs of Phosphate and Potash fertilisers by reviewing soil nutrient status and utilising Phosphate and Potassium in home produced farm wastes, such as slurry and farmyard manure, more effectively.
Aled encourages farms with lower stocking rates and Nitrogen inputs below 100kg per hectare to maintain grass swards with good clover contents. "Swards with clover content of 17 to 30 per cent are capable of producing similar yields of dry matter to a system receiving 200kg of Nitrogen per hectare. Using a red clover system, even higher yields of forage can be conserved, although the persistency of red clover falls within two to three years of sowing."
No Comments
Nobody has posted any comments on this story.
|
Farming items for Sale
|
JOHN DEERE 6210 Powerquad - North Tiverton(GBP 19950)
Deutz-Fahr - K 120 - Carnforth
(Price on Application)
(Price on Application)
Valtra N101 HITECH - Tiverton(GBP 38100)
John Deere 6620 - Carnforth
(Price on Application)
(Price on Application)
McCormick MTX150 - North Tiverton(GBP 23950)
Related News
Record cost of farm inputs puts serious strain on supply chain - 22 Nov 2011Farmers and food processors are at risk of being caught between a rock and a hard place as signs of downward pressure from supermarket price wars coin...
Farmers urged to reduce input costs - 31 Dec 2007"Zero budget farming can make cultivation a profitable occupation" ERODE: If the right to life includes the right to access clean air, water...
Farmers must monitor input costs and not be afraid to shop around - 01 May 2008As concerns grow about rising input costs, the NFU is urging its members to make sure they keep a close on eye on costs and not be afraid to shop arou...
Spiralling input costs - 08 May 2008The spiralling costs of farm inputs such as fuel, fertilizer and feed were high on the agenda for discussion at the May meeting of NFU Cymru members i...
Farmgate prices and input costs are the main concerns to Welsh farmers during the current recession - 19 Jul 2009Farmgate prices and input costs are the current issues that Welsh farmers feel could cause the most significant risk to their businesses during the cr...
Forward buying to combat rising input costs - 10 Sep 2010Farmers should consider forward buying this autumn as a means of combating rising input costs as low interest rates keep the cost of borrowing money h...
NFU warn on input costs - 13 Jun 2011Latest figures released by Defra show that farming contributed more than ’7 billion to the United Kingdom economy in 2010, but farm incomes were...
Study links milk farm chemical input to nutrient kick - 30 May 2008Lower input non-organic and organically produced milk has been found to contain significantly higher levels of beneficial fatty acids, vitamins and an...
Govt starts importing farming inputs - 05 Sep 2008The Government has begun importing farming inputs ahead of this year's summer cropping season to ensure food security, the Governor of Matabelelan...
Differentiation holds the key for English beef industry - 04 Oct 2005Generic promotion won't lift low cattle prices according to the English Beef and Lamb Executive (EBLEX). In a world without offsetting payments, ...
