Speaking at a series of IFA grain meetings around the country, Mr. Delaney said: “The majority of growers are questioning the logic of growing a crop this year given that they experienced losses of up to €150 per acre last season. High world and EU carryover grain stocks into the 2010/11 campaign will limit any prospect of a significant price rise in the near term. Current forward prices for new crop dried grain indicate a green price of €100/t and €110/t for barley and wheat respectively, a marginal lift on last year’s harvest price.”

“Repeated surveys by IFA’s input project team clearly show that input prices in this country are seriously out of line with our competitors, particularly for seed, fertiliser, crop protection products, machinery and machinery parts. Historically seed grain prices retailed on farm in or around 2.8 to 3 times the price of a tonne of grain. Over the last few years the trade has been looking for a multiple of 4.5 to 5 times the price of a tonne of feed grain. Farmers are increasingly using home saved seed in an effort to reduce costs. Growers need to achieve minimum cost savings of 15% to 20% across the board on all inputs in addition to the anticipated rise in grain prices to restore profitability,” he added.

The IFA National Grain Committee Chairman concluded, saying: “No farmer should put the plough in the ground unless the sums add up. The trade needs to wake up - no other sector of society is expected to work for nothing. This industry has no future unless growers achieve a margin over the cost of production."

---