APPENDIX 14  Agriculture

A14.1      Agricultural Land Quality

Land Quality

Description

5

Excellent

Highest agricultural value, heavy in composition producing fodder for intensive Dairying, Livestock production with some Tillage practised.

4

Good /

Above Average

Medium Loams used for both Tillage and livestock production.

3

Average

A mixture of heavy and medium with traces of peat suitable for Livestock and Tillage. Productivity would be reduced in comparison to the two categories above.

2

Below Average

These soils are a mixture of poorly drained peat and rocky contours with a minimum of soil cover. Agricultural value very poor and confined forestry and light grazing.

1

Bad

Rocky unmanageable land producing little grass only suitable for grazing by sheep.

0

Not Suitable

Mountainous with a high composition of rock unsuitable for any production.

 

A14.2      Gross Margin Analysis

The following figures are guidelines, which are regularly used in farm planning.  The relative profitability of individual farms varies considerably and the figures used in this document may well vary and will not be applicable to every farm in the concerned area.  Reform of the Common Agricultural Policy has resulted in a few fundamental changes in the way farming is carried out in Ireland.  Most recently Agenda 2000 has secured substantial increases in Livestock and Arable direct payments.  These direct payments represented about 50% of farmers income in 1998, and this figure will increase over the lifetime of Agenda 2000.

A14.2.1              Beef Farming Systems

Table A14.2.1.1 - Suckling Systems Including Premia (Non-Disadvantaged Areas)

 

Gross Margin (£.per ha)

Level of Performance

Poor

Moderate

Good

V. Good

Excellent

Single suckling selling seanlings

294

361

427

488

598

Single suckling selling yearlings

270

363

416

471

596

Single suckling selling 1.5 year olds

289

367

421

478

560

Single suckling to Beef

-

345

424

493

563

Forage area required for basic premia exceeds adjusted areas required for production

Premia

Suckler Cow Premium

£147.39

 

 

 

 

EU Beef Premium Steers

£96.08

 

 

 

 

Table A14.2.1.2 - Suckling Systems Including Premia (Disadvantaged Areas)

 

Gross Margin (£ per ha)

Level of Performance

Poor

Moderate

Good

V. Good

Excellent

Single suckling selling seanlings

383

451

 

 

689

Single suckling selling yearlings

360

452

 

 

687

Single suckling selling 1.5 year olds

375

456

 

 

680

Single suckling to Beef

-

431

 

 

652

Forage area required for basic premia exceeds adjusted areas required for production

Premia

Suckler Cow Premium

£147.39

 

 

 

EU Beef Premium Steers

£96.08

 

 

 

Beef cow scheme/Beef Cow headage

£80

 

 

 

Note: Headage of suckler cow is included in above budges at £80 per cow (average of severely and less severely handicapped area) subject to limit of £89.62/ha

 

Table A14.2.1.3 - Other Beef Systems Including Premia

 

Gross Margin (£ per ha)

Level of Performance

Poor

Moderate

Good

V. Good

Excellent

Calf to 2 years-Steers

243

309

451

484

548

Calf to Yearling-Steers

205

292

427

501

627

Calf to 1.5 years-Steers

237

310

420

466

552

Calf to 2.5 years-Steers

277

283

356

457

541

Calf to 2 years-Steers

221

287

317

431

503

Winter Finishing Steers

 

300

414

509

563

Winter Finishing Heifers

 

0

122

246

364

Store to Beef (Aut/Aut)-Steers

 

300

348

435

556

Store to Beef (Spring/Spring) Steers

 

187

249

331

452

Summer Grazing Steers

 

114

167

264

348

Forage area required for basic premia exceeds adjusted areas required for production

 

Notes: Full Basic 9 and 21 month premia paid on steers in above budgets except summer grazing and winter finishing

Combining heifers with steers may allow steers to qualify for extensification premia; the effect on overall farm gross margin will depend on relative profitability of steers and heifers.

The above figures are on a per ha basis and obviously a greater insight could be achieved by knowing individual farm size.

 

A14.2.2              Dairy Farming Systems

Milk production in Ireland is predominantly based on spring calving systems.  This is because of the milk pricing strategy adopted by industry and also because grazed grass, which is a low cost feed, makes a major contribution to the feed budget of dairy cows.

However, based on production figures for spring and winter milk production systems, higher profitability can be attained by autumn calving for the production of milk for the liquid milk market. The following tables give a brief outline of profitability in producing creamery (processing) milk and liquid (table) milk.

Table A14.2.2.1 - Creamery Milk:

 

Gross margin (£ per cow).

Litres/Cow

3637

4091

4546

5000

5455

5828

Total Output (£)

748

833

913

998

1083

1168

Stocking Rate (ha/cow)

0.49

0.45

0.40

0.40

0.40

0.40

Total Variable Costs (£/cow)

236

257

283

303

317

331

Gross Margin per Cow (£/cow)

512

576

630

695

766

837

The guideline gross margin is influenced by yield (3637-5928 litres/cow) and stocking rate (0.49-0.40 ha/cow)

 

Table A14.2.2.2 - Liquid Milk

 

Gross margin (£ per cow)

Litres/Cow

3637

4091

4546

5000

5455

5828

Total Output (£)

812

905

993

1086

1179

1272

Stocking Rate (ha/cow)

0.49

0.45

0.40

0.40

0.40

0.40

Total Variable Costs (£/cow)

280

311

341

369

381

393

Gross Margin per Cow (£/cow)

532

594

652

717

798

879

The guideline gross margin is influenced by yield (3637-5928 litres/cow) and stocking rate (0.49-0.40 ha/cow)

 

The above tables take into account all main variable costs.  These figures do not take into account fixed costs.  Fixed costs would vary considerably from farm to farm and from system to system.  The above systems presume sale of all calves with the exception of herd replacements.

A14.2.3              Sheep Farming Systems

Table A14.2.3.1 - Early Lamb Production-lambs sold before the end of May

Gross Output/ewe

Moderate

Good

Very Good

Excellent

Total Output (£/ewe)

56.70

67.00

77.30

85.00

Total Variable Costs (£/ewe)

29.90

35.00

39.30

42.50

Gross Margin per ewe (excl. premia)

Non Disadvantaged areas

Disadvantaged areas

Total non-disadvantaged area

Total disadvantaged areas

26.80

18.00

23.51

44.80

50.31

32.00

18.00

23.51

50.00

55.51

38.00

18.00

23.51

56.00

61.51

42.50

18.00

23.51

60.50

66.01

These figures do not include headage payments which are payable on hogget ewes in less severely disadvantaged areas and on all ewes in severely disadvantaged areas, up to a limit of 200 ewes.

 

Table A14.2.3.2 - Mid Season Lamb Production.

Gross Output / Ewe

Poor

Moderate

Good

V. Good

Excellent

Total Output

£34.70

£42.70

£50.55

£54.55

£58.50

Total Variable Costs

£17.70

£20.60

£22.55

£24.55

£26.00

Margin Per Ewe (Excluding Premia)

Premium Approx Non Disadvantaged

Premium Disadvantaged Area

Total Disadvantaged Area

Total Non Disadvantaged Area

£17.00

£180

£23.51

£40.51

£35.51

£22.00

£18.00

£23.51

£45.51

£40.00

£28.00

£18.00

£23.51

£51.51

£46.00

£30.00

£18.00

£23.51

£53.51

£48.00

£32.50

£18.00

£23.51

£56.01

£50.50

 

A14.2.4              Store Lamb Finishing

This production system is totally open to the vicissitudes of market conditions.  Gross margins vary too much in order to apply meaningful values.

 

A14.2.5              Tillage Farming Systems

Table A14.2.5.1 - Cereals.

 

Gross Margin £ / ha

Tonne/ha

Wheat

Feed Barley

Malting Barley

Feed Oats

 

Winter

Spring

Winter

Spring

 

Winter

Spring

4.9

22.24

177.91

118.61

227.33

306.40

143.32

197.68

6.2

123.55

294.04

214.98

323.7

420.07

239.69

294.05

6.8

175.44

350.88

261.93

370.65

476.90

286.63

340.99

7.4

224.86

410.19

3087

417.60

533.73

333.58

387.95

8.0

276.75

467.02

355.83

464.55

590.57

380.65

434.90

8.6

326.17

526.32

405.24

513.97

647.40

429.95

 

9.3

378.06

583.16

452.19

 

 

469.49

 

9.9

427.48

 

499.14

 

 

 

 

 

Table A14.2.5.2 - Sugar Beet.

Gross Margin £ / ha

Tonne / ha

£

34.6

289.10

39.5

481.84

44.5

674.58

49.4

687.32

54.4

1060.06

 

A14.3      Impact on Agricultural Land

Table A14.3.1 - Impact on Agricultural Land – Green Route

Route Options

Landtake (Ha) (Assumes 50m width)

Length (Km)

Average Land Quality

Green

 

 

 

Node 1 to 2

7.54

1.508

1.7

Node 2 to 3

1.60

0.320

1.0

Node 3 to 4

33.87

6.775

2.2

Node 4 to 6

40.64

8.128

2.6

Node 6 to 9

31.03

6.206

3.3

Node 9 to 14

79.72

15.945

4.2

Node 14 to 16

10.47

2.094

4.0

 

Table A14.3.2 - Impact on Agricultural Land – Yellow Route

Route Options

Landtake (Ha) (Assumes 50m width)

Length (Km)

Average Land Quality

Yellow

 

 

 

Node 1 to 2

2.95

0.590

1.7

Node 2 to 3

2.57

0.515

1.0

Node 3 to 3a

18.81

3.762

1.9

Node 3a to 5

44.01

8.802

1.4

Node 5 to 6

15.21

3.041

3.0

Node 6 to 7

8.99

1.799

3.0

Node 7 to 7a

5.58

1.116

3.0

Node 7a to 8

31.05

5.174

2.7

Node 8 to 11

31.39

5.231

3.8

Node 11 to 12

54.52

9.087

3.3

Node 12 to 15

24.89

4.148

3.8

Node 15 to 16

2.62

0.437

4.0

 

Table A14.3.3 - Impact on Agricultural Land – Red Route

Route Options

Landtake (Ha) (Assumes 50m width)

Length (Km)

Average Land Quality

Red

 

 

 

Node 7 to 7b

5.42

1.085

3.0

Node 7b to 13

47.46

9.492

2.8

Node 13 to 14

45.79

9.158

4.1

 

Table A14.3.4 - Impact on Agricultural Land – Blue Route

Route Options

Landtake (Ha) (Assumes 60m width)

Length (Km)

Average Land Quality

Blue

 

 

 

Node 7b to 10

48.25

8.042

2.9

Node 10 to 11

7.57

1.261

3.0

Node 11 to 12a

63.61

10.602

3.0

Node 12a to 15

17.80

2.967

3.2

 

Table A14.3.5 - Impact on Agricultural Land – Links

Route Options

Landtake (Ha)

Length (Km)

Average Land Quality

L/01

(Assumes 50m width)

 

 

Node 4 to 5

27.63

5.527

1.9

L/03

(Assumes 50m width)

 

 

Node 9 to 13

32.32

6.465

4.1

L/0 4

(Assumes 60m width)

 

 

Node 8 to 10

23.01

3.835

3.0

L/06

(Assumes 60m width)

 

 

Node 12 to 12a

8.69

1.449

3.5

 

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