Post Milk Quota Abolition pros and cons

hayek

Just wondering, will the abolition of quotas mean decreasing margins in dairying?
If so is this going to mean greater pressure on those of us on Marginal land and drive a bigger wedge beween the incomes of those on good land and poor land.

keep going

margins have been decreaseing with years quota going is going to make no difference and if you have high costs relative to other farmers you will be in trouble.how can people say quotas helped milk price when we were getting as much 25 years ago

tommylimerick

farmers are being slowly ****ed over
inflation erodes the purchase power of farmers
it is near impossible to expand with land values and the logistics of expanding
most dairy farms are operated near full capacity
i can t see where this harvest 2020 expansion will come from

Min

It is great for people with the land but who have small milk quotas.

About 2,500 Glanbia suppliers intend to increase milk supply.

hayek

tommylimerick wrote: »

farmers are being slowly ****ed over
inflation erodes the purchase power of farmers
it is near impossible to expand with land values and the logistics of expanding
most dairy farms are operated near full capacity
i can t see where this harvest 2020 expansion will come from

Well said!! Harvest 2020 was dreamt up by a hamstrung fianna fail government grasping at straws for a "good news" story. The present government just ran with it. Coveney was quoted last week as saying agriculture has to ramp up production for the sake of the economy yet he has been totally silent on the worst year for farmers in living memory.
He seems to love photo ops but has yet to stand in a wet field in solidarity with farmers especially in poor land.

Post quota looks like only suiting those with large blocks of land who can run 200+ cows and employ a guy to milk them. Don't get me wrong not jealous more power to them! Was thinking lately would selling cows and quota be an option and try establish an efficent suckler herd

Tipp Man

hayek wrote: »

Well said!! Harvest 2020 was dreamt up by a hamstrung fianna fail government grasping at straws for a "good news" story. The present government just ran with it. He was quoted last week as saying agriculture has to ramp up production for the sake of the economy yet he has been totally silent on the worst year for farmers in living memory.
He seems to love photo ops but has yet to stand in a wet field in solidarity with farmers especially in poor land.

Post quota looks like only suiting those with large blocks of land who can run 200+ cows and employ a guy to milk them. Don't get me wrong not jealous more power to them! Was thinking lately would selling cows and quota be an option and try establish an efficent suckler herd

Don't panic - a fella by himself with 100 cows and little to no borrowings will be a damn site better off then the massive herds with the massive borrowing to go with them

6480

Tipp Man wrote: »

Don't panic - a fella by himself with 100 cows and little to no borrowings will be a damn site better off then the massive herds with the massive borrowing to go with them

a good point there if u can keep costs down u could make as much than a big herd of 200 plus cows the bigger the tree the bigger the fall

hayek

My biggest problem is framented farm with mostly poor soils, 80,000 gals a mortgage to pay managable but significant.
Not panicking but they say when everyone else is turning left should i turn right!
Margins especially energy costs really eroding profits If i sold Quota cleared debts and take my chances is it too big a risk.

road_hog

for the envisaged expansion post 2015 to come to pass , a proper long term successfull land leasing culture will need to emerge as land is either too expensive or whats for sale is too far away for to suit grazing cows , i dont see that many doubling over night under present circumstances

whelan1

Min wrote: »

It is great for people with the land but who have small milk quotas.

About 2,500 Glanbia suppliers intend to increase milk supply.

is this according to the survey taken last year or when ever? i assume alot of people have changed their mind, i know i have

blue5000

That's a good point, Whelan. I'd say if they ran that survey again now a lot of people will have changed their minds after the year we've had.

I think we really do need some sort of change in policy to make it easier to swap parcels of land. When the big estates were divided up the land commission made a proper b*lls of it around here anyway. People got a field here and a field there and another bit half a mile or a mile away, it's impossible to farm land efficiently with this set up.

kevthegaff

im gona go from 80 to 120 post quota and also increase the yields. Shouldnt put me under any more pressure financially or land wise. Im looking forward to it as 13/14, 14/15 id say will definetely be superlevy years i reckon:(

Min

whelan1 wrote: »

is this according to the survey taken last year or when ever? i assume alot of people have changed their mind, i know i have

Yeah, according to that survey.

I will be expanding, but I don't have a large quota at present and won't need to borrow to expand.

K.G.

Well how have things panned out.in our area it seems to be alot more cows in yards but not thr same amount extra in milk yet in coop.retirement rate is similar to before and not many new entrants.land rent prices have moved up and its very hard for non dairy to compete.just thought in the light of the stress and agro this week used to bring every year id throw this up