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."
