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Is this the end of the small farmer

  • 21-03-2022 9:11pm
    #1
    Registered Users, Registered Users 2 Posts: 259 ✭✭


    Just sitting here thinking with the price of everything is it time for the small farmer to sit back and forget about farming the land it will be impossible to make ends meet with the price of inputs I know our own situation it will be the last year we will be working for nothing just going to keep enough stock to get our payment so in reality we will be down stocking by at least 75% and I honestly believe we will have as much if not more money in the farm account at the end of the year anyone else feeling like this



«1

Comments

  • Registered Users, Registered Users 2 Posts: 9,148 ✭✭✭893bet


    The “payment” is getting smaller and smaller. And inflation is going to flog it.


    Keep going and keep costs down and just make sure the taxman gets as little as possible.



  • Registered Users, Registered Users 2 Posts: 14,123 ✭✭✭✭Danzy


    It certainly feels like it, Just thinking today as I was flying around after a particularly wild limousine tore down fences and made a short job a 2 hour one.


    The place gets better each year, the stock better but the earnings from the farm get worse in real terms. Inflation battering the payments and costs have left reality. Add on to that what is left buys even less now.


    It's frankly very disheartening, and there is no effort or sign of will in society or govt to reverse it. If society could even tolerate farming providing a poor living it would nearly be enough. It's turning into a money pit.


    Europ, society and Govt have no interest in food supply, production or security.


    Even Vlad using that as a weapon won't change that.


    This is a problem for the bigger lad as well, they are viewed as even lower than the average farmer.



  • Registered Users, Registered Users 2 Posts: 1,475 ✭✭✭JustJoe7240


    Quite possibly, I stand to inherit a reasonably substantial area of land, and the way things are going, in the near future, it will make more sense to plant It with trees.



  • Registered Users, Registered Users 2 Posts: 3,670 ✭✭✭StevenToast


    Get yourself a cushy number off farm that pays the bills....

    Dont be expecting the farm to be supporting a family....just enough to wash its own arse....

    "Don't piss down my back and tell me it's raining." - Fletcher



  • Registered Users, Registered Users 2 Posts: 9,760 ✭✭✭Birdnuts


    Scale isn't exactly the path to riches either as margins continue to get eroded and inputs cost get ever higher. The crisis in the pig industry is evidence enough for that. Also if you look at farming in the US where the scale is off the charts compared to here, a large majority of farmers there could not survive without their version of CAP whose budget is actually bigger than the EU's despite having a lot less farmers!!



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  • Posts: 0 ✭✭ [Deleted User]


    I think small farms have an amazing chance to diversify into something different.

    Ask any big farmers with big numbers and big debt how there getting on this year.



  • Registered Users, Registered Users 2 Posts: 3,936 ✭✭✭Dickie10


    i think the easiest way for a farmer to diversify is to get an off farm job, its mad how many famrers on average sized places in midlands and west are still farming away full time i dont know how they make it pay tbh



  • Registered Users, Registered Users 2 Posts: 3,034 ✭✭✭SuperTortoise


    I don't know a single beef farmer that's farming "full time", even going back 20 odd years i don't think i've ever come across one.



  • Registered Users, Registered Users 2 Posts: 4,426 ✭✭✭maestroamado


    Irish farming is all about the payment... i read in the last couple of days land value has increased by 50% so like the housing i expect non farming people are buying up... Why would a business person pay a bank to keep money on deposit... better buy a bit of land and if it does not a profit day on day it will be there and likely gain value...



  • Registered Users Posts: 336 ✭✭JohnChadwick


    Yea find that owning land can feel like a total trap.

    Looking at my figures it is clear keeping animals is a solid waste of time. But grass still needs to be grazed. You still have to put the time into it.

    Planting or selling up are not options. No part time farming enterprise seems financially viable now. Not one. Not sheep, not Sucklers, not drystock.



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  • Registered Users, Registered Users 2 Posts: 5,133 ✭✭✭endainoz


    Totally agree, divergence of payments will affect the big fellas a lot too.



  • Registered Users, Registered Users 2 Posts: 20,210 ✭✭✭✭Donald Trump



    Once the lads with big debt get over the initial hurdles, they'd be dying for inflation to rocket up.


    When the inflation bites, it's the fella with his pennies saved in the bank who gets stung. He often just doesn't see it



  • Registered Users, Registered Users 2 Posts: 1,404 ✭✭✭tractorporn


    Diversify into what exactly? I hear this a lot but nobody gives viable options. Apart from an off farm income which most small farmers already have, I have yet to see any diversification options that 1. don't involve spending lots of money or 2. provide the same income as an off farm job.



  • Registered Users, Registered Users 2 Posts: 4,426 ✭✭✭maestroamado


    even though i totally agree with all of your comments... why is moving on not an option if its not viable...



  • Registered Users, Registered Users 2 Posts: 21,161 ✭✭✭✭Ash.J.Williams


    Saw a delivery of fertiliser today while out driving and thought “oooh la la “ rich fucker 😂😂



  • Registered Users, Registered Users 2 Posts: 4,426 ✭✭✭maestroamado


    It may be a blessing when people find out how much cost v gain for small holder... i expect the guys who need two crops will feel it...



  • Registered Users, Registered Users 2 Posts: 7,103 ✭✭✭amacca


    Diversify into giving diversification advice to lads wanting to diversify...how much worse could you be at it than the scale up max production ever decreasing profit margins crew? ....tell them to do a bit of wild honey and some native breeds, set up a petting zoo, start making your own balsamic vinegar out of spuds etc etc....air dried spring lamb jerky and wild garlic aoili with pre prepped nettle soup like those two twin pains in the hole extolling the virtues of veg and saving the planet while filling the super market shelves with plastic packaging for their vegan butternut squash ding dong a long katsu curry doo dah etc etc


    It's not as if there would be huge set up costs, red tape, haccp guidelines etc (not that I disagree with those)....just that the route to market here and be compliant seems a lot more "red tapey" than other jurisdictions.



  • Posts: 0 [Deleted User]


    I think the price of land, the sfp and amount of manual labour in farming is keeping small farms viable.

    As ageing farmers retire, technology improves, the sfp shrinks and as a result margins per acre fall more land will come on stream and big farmers will get bigger.



  • Registered Users, Registered Users 2 Posts: 14,123 ✭✭✭✭Danzy


    The idea of diversified farming falls in to the same crisis, people not willing to pay for food and it not meeting cost of living in a meaningful way, inputs and inflation breaking those apart.


    I've diversified some bit but it's just the same problems but a different take on it.


    Selling price goes up a little, inputs and other expenses, living expenses go up by multiples.


    Below cost selling could be ended for starters, should have been never allowed.


    It's really mad we are facing in to a billion people going hungry next year as black sea grain dries up, nevermind the sharp reduction in yield across Europe.

    If there is a drought in North America again then the world food supply will be in big trouble.


    No one cares though, food comes from a fridge.



  • Registered Users, Registered Users 2 Posts: 1,779 ✭✭✭paddysdream


    Fair bit of depression on here tonight.Lots of full time farmer's around here and not all dairying.

    Every one of the adjoining farms to me is run as a full time enterprise bar one .Area would vary from 80 acres to 300 plus .


    Reading through thread on here often wonder if I live In some sort of parallel universe where everyone has an off farm job and the farm is used as a tax deductible expense.



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  • Registered Users, Registered Users 2 Posts: 2,257 ✭✭✭DBK1


    Yea plenty of full time farmers around here as well, in all the various different enterprises. The age profile however is getting older. The youngest, non dairy, full time farmer I can think of would be early 30’s.



  • Posts: 6,192 ✭✭✭ [Deleted User]


    Wont be end of small farmers,as they can trim back and absorb price shocks for a year ir two as most wouldnt rely on farm for income


    But may leave many medium (80 to 110ish acres) farms,who would have had reasonable drawings/pension contributions,wondering as to rationale behind pushing it intensivly along side full time work.....most,if not all could likely make as much with a 25% reduction in stock along with less stress/worry and improved work/life balance.....or let it out tax-free



  • Registered Users Posts: 323 ✭✭arthursway


    I'm not a farmer but likewise I do live in the countryside and I do worry what tthis squeeze and the next recession will have on our way of life.

    Let's be real 2008 killed our way of life, the pubs we all loved full with our friends Friday Saturday Sunday night most of them closed to never open their doors again. Other friends emigrated to never return.

    Our country towns never recovered once vibrant now only filled with takeaways and vape shops and closed pubs to remind of us of more youthful happier times.

    Some lads who went for trades are doing well now again but how long will that last till recession comes and we lose more friends and family to emmigration.

    The countryside never recovered and prospered again like Dublin.

    I am very concerned for the next recession as rural Ireland is still on its knees from 2008 the next recession will be lights out if you ask me.



  • Posts: 0 [Deleted User]


    The end of the small farmer? No. The end of the system on farms where the farmer and possibly spouse is subsidising the farm system, possibly.



  • Registered Users, Registered Users 2 Posts: 5,133 ✭✭✭endainoz


    The next recession is just around the corner, but of all the sectors around these parts in the west that were devastated for a few years, (hospitality, tradesmen, hauliers, countless other professions) farmers were relatively recession proof. Not completely of course, particularly with the ones with big loans out after listening to teagasc, but the blow was not felt as much in the farming sector at all.



  • Registered Users, Registered Users 2 Posts: 1,413 ✭✭✭epfff


    Have to disagree.

    The fall was felt by farmers just the drop didn't come from such a hight and they were better able/more flexible to adjust to the lows.



  • Moderators, Society & Culture Moderators Posts: 3,897 Mod ✭✭✭✭Siamsa Sessions


    I'm a small part-timer at the moment but the plan is to become a medium-sized full-time farmer in 2024 when land we have leased out reverts to me. It'll be around 85 acres of well-drained ground in the south-east of the country. I'll be 48 at that stage. I wouldn't rule dairying out but it's not what I'm thinking at the moment.

    Re small farmers surviving: I work off-farm currently where researchers and others are constantly trying to second-guess what technology they could sell to farmers. The biggest mistake they make is failing to appreciate that many farmers have been running their own business for 20, 30, 40 years and have lived thru all sorts of crisis on-farm and in the wider world. I don't know any other sector where there is such resilience to internal and external strife. Some lads are fools and slaves but there's plenty (big and small) who keep the show on the road with minimum fuss no matter what else is happening.

    Trading as Sullivan’s Farm on YouTube



  • Registered Users, Registered Users 2 Posts: 5,133 ✭✭✭endainoz


    You just proved my point, they weren't hit anywhere near as hard as other sectors.



  • Registered Users, Registered Users 2 Posts: 1,413 ✭✭✭epfff


    Think you misunderstood my thinking or are trying to twist what I said to make out there was a living to be made out of farms in the last boom.

    I think you need very creative accounting to match a aldi or lidl wage for any farming in this boom or the last.

    If you lose half of zero is much less than losing half of something.

    Or in the worst case if you lose all of zero you are no worse off.



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  • Registered Users Posts: 318 ✭✭Rusheseverywhere


    All Irish farms are small scale. You prob saw farm in Ukraine on RTE news and issues they having anyway that 1 farm they did article on was the size of County Leitrim. Also intresting annual average salary in Ukraine is €2000 per year. No way Irish farms are competative against that. Subsidies are worth less and less I am maxed in every scheme ie ANC, SFP, GLAS, BDGP, BEEP and Organic but the money is either staying the same or being cut ie my SFP which I got as a young farmer from National Reserve is being cut. My organic payment will be the same per acre in 2028 as it was in 2015. Future is dairying on a largish scale, a bit of summer grazing or planting. In nearly every type the reality is Farming will be a tax write off.



  • Posts: 0 ✭✭ [Deleted User]


    When I'm doing shopping in supermarkets the amount of stuff being imported is unbelievable.

    There's gotta be opportunity's there somewhere.



  • Registered Users, Registered Users 2 Posts: 2,150 ✭✭✭Dinzee Conlee




  • Posts: 0 [Deleted User]


    That’s the thing. People would rather by cheap low grade imported food than pay for quality.

    Maybe if you could grow or produce a few different items process them and sell direct



  • Registered Users, Registered Users 2 Posts: 1,736 ✭✭✭lalababa


    Most farms are beef , sheep or dairy. Base prices have never been as good. Beef at 4.90, hogget at 7.30 and milk at 45c. Should be an upswing for grain aswell. Yeah fertiliser has doubled and diesel up 2.5 times. Swings and roundabouts. For beef and sheep-Just cut down abit on the animal numbers if inputs are not giving a return..and the less animals then probably the price will rise even more. As for dairy ..don't cut down as every cow should be giving a hansom profit.

    The new cap doesn't look good for upper medium and high cap recipients, but it is an improvement for low recipients. The payments in the organic scheme have increased. Small farms never made anyone rich... I remember a 35acre slough(wet) farm raising 14 kids. He had about 10 milkers and then went to like 12 sucklers. He had the very odd day doing piecework. The kids were always fed and clothed etc. Absolutely nothing was spent that wasn't needed. But those times are passed. Everyone thinks if you're not earning at least 50k then you're at nothing. That seems to be the modern mantra. In the end of the day it's the simple things that give us pleasure...a warm stove/cup of tea/chat with a friend.



  • Registered Users, Registered Users 2 Posts: 807 ✭✭✭CreadanLady


    I never understood why more people don't do just this, cut back everything, de-stock, demachine and pull back fertilizer and other inputs. Draw everything back to the absolute minimum allowable so that you can be eligible for the payments and grants. And basically become a grant farmer. Sure, the gross income will reduce somewhat, but so will the expeses and the all the time expenditure. Can sit back then a little and do only what minimal farm works needs doing in order to keep the payment coming, and in the saved time get some off farm job.

    I see lads flogging themselves at cows and up working like dogs every waking hour for next to nothing if you were to break it down to an hourly rate.

    Being progressive and whoring yourself at every discussion group going isn't much good if you end up in an early grave with the stress of it.

    Busy fools.

    The MFV Creadan Lady is a mussel dredger from Dunmore East.



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  • Registered Users, Registered Users 2 Posts: 272 ✭✭orchard farm


    Me and the brother who works off farm were talking about this lately and after telling him the reality of my income after expenses and hours put in to the place his exact words were “you didn’t inherit a farm all you were given was a poisonous chalice “.It struck a chord especially when I see his evening’s and weekends off and no responsibilities!!



  • Posts: 0 [Deleted User]


    Because what would the neighbours say, you'd be the talk of the place.

    Talking to a friend of mine a few years ago, said I didn't believe in production but profit, looking after my family and farm. He genuinely said he felt sorry for me.

    He's a good lad but was caught up deep in the bullshit that surrounds this industry, now happy to report he's done a complete 180 since that time.



  • Registered Users, Registered Users 2 Posts: 5,133 ✭✭✭endainoz


    Well put it this way, in the last recession in my area, there were no farmers that had to change career because their business went to the wall. No farmers that had to sell their farm to pay a mortgage. I know plenty of tradesmen that went bust in 2009/2010 but not any farmers. That was my point.



  • Registered Users, Registered Users 2 Posts: 2,257 ✭✭✭DBK1


    You’re right, but the reason for that is because there never was a boom in farming so the farmer never had the money (or thought he had it) to invest off farm. Therefore he didn’t lose anything because he never had anything in the first place.



  • Registered Users, Registered Users 2 Posts: 272 ✭✭orchard farm


    The problem with cutting everything back to min stocking is bills will still have to be paid i.e accountant,slurry,fodder,diesel,vet etc so you end up taking it out of bps and your just poorer off.You need to keep enough to pay the bills if you’ve any hope of keeping payments,unfortunately the bills are going up therefore stocking numbers go up too



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  • Registered Users Posts: 1,164 ✭✭✭MIKEKC


    Farmers are a protected species. When they shout loud enough they always get a dig out. Take the pig industry for e.g. Massive profits made over a number of years particularly 2019. IFA president has e7million in business account. No information on his private account. If he could make it others should be able to do the same. Now they want e 100 million made available as a loan to be paid back over 15 years .What will happen if we got other bad years in pig production?. This loan will be rolled over and never paid back. Just like the national dept.



  • Registered Users, Registered Users 2 Posts: 4,077 ✭✭✭Hard Knocks


    Allot of smaller pig farms around here shut down in the last 5 years



  • Registered Users, Registered Users 2 Posts: 1,736 ✭✭✭lalababa


    I'd have to disagree re cutting numbers. Unless you're talking about drastic reduction, ie going from 100 animals to 20. There's major savings in fertiliser/ diesel and ration with 10 to 50% cuts in stock. Basically non intensive stocking.



  • Registered Users Posts: 1,164 ✭✭✭MIKEKC


    Yes most small producers have shut down. Rarely hear of the big operators closing



  • Registered Users, Registered Users 2 Posts: 4,077 ✭✭✭Hard Knocks


    Slurry, silage and fertilizer for silage are main costs on allot of farms

    It finding that sweet number for your farm that reduces costs to a min and maximise output



  • Posts: 0 [Deleted User]


    Farming is addictive as most farmers build it in to their identity growing up on a farm.

    There are times when the work is overwhelming, the prices are bad, the costs are high and you just hit a run of bad luck.

    Then there are occasions when things go well and it seems worthwhile.

    I think a lot of farmers farm part time as the day job is soul destroying office work where people are there against their will and only talk about holidays, box sets and office politics.



  • Registered Users Posts: 336 ✭✭JohnChadwick


    Thinking about this realised that I hardly know my neighbours as don't go to mass or am not involved in local community. Just don't meet neighbours around anymore. Covid has exacarbated this.

    But do intend on going to a minimum stocking level (0.15 LU/ha) from 2023 on. Anyway not sure the neighbours will even know this as the farm is hidden from road view and my social circle isn't in the area where I farm.

    Many young farmers my age (late 20s) would be similar view I'd say, profit before production and not giving a toss about neighbours.



  • Registered Users, Registered Users 2 Posts: 2,231 ✭✭✭carrollsno1


    Is it still diversification if we all go that way?

    Better living everyone



  • Registered Users, Registered Users 2 Posts: 14,123 ✭✭✭✭Danzy


    A hidden benefit to Farming is self reliance and being cagey with the pingin.


    I haven't a material bone in my body.


    I enjoy a humble lifestyle and farming allows me afford it.


    I think the point of this thread is that a lot of us were content with a small wage from it, but with input costs up bout 25% a year, payments going down, inflation tearing them apart and the cost of living in general racing ahead that it feels like there are bits of the car flying in every direction.


    Like I said I have no interest at all in the material but the place used be a significant contributer now it is harder to see that.



  • Registered Users Posts: 318 ✭✭Rusheseverywhere


    Fixed costs are fixed costs but seem to be getting ignored by some. I have 15km or more of fencing if I have 5 cattle or 100 cattle that needs to be maintained. The same with farm roadways, water troughs and piping etc. Tractor and loader etc all need maintaining even if doing little work seals will perish gaskets go etc. A new 120 hp tractor with loader is 100k, new grant spec shed is 100k. grand "farm " grants but that is only a reward for land ownership and they could dissapear like in the UK. Earlier poster said organic going up, it is not just the max eligible payment area has increased from 60 ha to 70ha.



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