Fertiliser costs may have 'very significant impact' on 2026/2027 crop production
The Irish Grain Growers Group (IGGG) has noted the strengthening of international grain prices since the start of the conflict in the Middle East region.
However, according to the farm organisation, these movements have taken place from what was a very weak starting point.
Meanwhile, energy prices have soared, impacting on the cost of fertilisers and other farm inputs.
IGGG secretary, Clive Carter, commented: “Most tillage farmers will have secured the fertiliser they need for this season prior to hostilities in the Gulf breaking out.
“But the prospect of fertiliser prices remaining strong into the future may well have a very significant impact on Irish and European crop production costs in 2026/2027."
He noted that grain markets are impacted by a number of factors, including "the physical availability of cereals and oilseeds in real time in tandem with uncertainties regarding future costs of production at farm level".
Carter continued: “Given these circumstances, it will be interesting to see how markets react during the May/June period as the harvest in the southern hemisphere gets underway and farmers there seek to secure the fertiliser they need for their next cropping season.”
Tillage aid scheme
Meanwhile, Monday (March 9) marked the close of entry date for the €30 million tillage aid scheme committed to by the Irish government as part of Budget 2026.
“We are expecting the monies to be out to farmers with the next couple of weeks: and it is much needed," Carter said.
“Looking ahead, we are hoping that the support measure for 2026 will be developed into a multi-annual scheme. And we are actively lobbying government to this end.”
IGGG is also lobbying all stakeholder groups across the farming and food sector to support a bespoke scheme that will incentivise the greater use of native grains within Irish livestock rations again.
The IGGG secretary further explained: “Bord Bia has indicated that it wants to look at ways of developing such a measure.
“But we also need the full buy-in of the government, the Department of Agriculture, Food and the Marine, all the farm organisations, the co-ops, the dairy and red meat processers plus the feed compounders.
“But the most important grouping of all comprises Irish dairy and livestock producers: they must actively call for the introduction of the proposed measure.
“Even the smallest of a premium paid for milk meat and eggs produced with a strong inclusion of native grains would translate into a significant and positive difference in terms of the prices received by Irish tillage farmers.”
Carter strongly believes that the proactive marketing of foods specifically produced with a strong focus on native grains would quickly secure a premium return for these products.
“Under these circumstances, everyone is a winner,” he stressed.
“But we have got to start somewhere. The initial focus of this work could be placed on the development of a specific ration with a 100% inclusion rate of Irish grains in its specification.
“The feed could then be used on a trial basis, targeting a specific aspect of Irish dairy or livestock production.
“Native grains gave a tremendous story to tell, both in terms of their inherent quality and their extremely low carbon footprint.
"What’s more, all of these claims can be independently verified.”
CAP reform
Ireland takes over the presidency of the EU for a six-month period on July 1.
The IGGG secretary believes this development gives Ireland an opportunity to influence the outcome of the ongoing Common Agricultural policy (CAP) reform negotiations.
He said: “There are positives that can be secured for the tillage sector from the new CAP.
“But finding the monies required to make this happen is the challenge.
"This is why it is so important to ensure that national financing can be allowed to complement core CAP funding made available by Brussels in the most effective way possible.”
