Farm Business Management PDF

Module: Farm Business Management (AERD30190) Module co-ordinator: Ms Aoife Byrne Email: [email protected] Office: Room 1.21 Ag 1  Introduction to Farm Business Management Setting the scene –> the context Scope and basic principles o...

Module: Farm Business Management (AERD30190) Module co-ordinator: Ms Aoife Byrne Email: [email protected] Office: Room 1.21 Ag 1  Introduction to Farm Business Management Setting the scene –> the context Scope and basic principles of farm business management Management processes and decision-making  The Challenge “Progress is impossible without change, and those who cannot change their minds Managing farm businesses in a cannot change changed and changing world anything”. George Bernard Shaw “If you don't like something, change it. If “Change is the only you can't change it, constant in life. One’s change your attitude”. ability to adapt to those changes will determine Maya Angelou your success in life”. Benjamin Franklin Setting the Scene – Farming in Ireland Year 2000: 141,527 farms in Ireland Year 2010: 139,860 farms in Ireland Year 2020: 135,037 farms in Ireland Irish Farm Numbers and Average Size (ha) (1991 – 2020) (Source: Census of Agriculture 2020 - Prelim. Results, CSO) Number of farms and Average Agricultural Area Utilised (AAU) by region, 2020 (Source: Census of Agriculture 2020 – Prelim. Results, CSO)  Economic Size (Standard Output) by Farm Size, 2020 (Source: Census of Agriculture 2020 – Detailed Results, CSO) Number of Farms by Farm Size and Farm Region (‘000) (Source: Farm Structures Survey 2016, CSO)  Farm Type – 2020 (Source: Census of Agriculture 2020 – Prelim. Results, CSO)  Area under Crops and Pasture – June 2022 (Source: Crops and Livestock Survey Final Results June 2022, CSO)  (1) Includes sugar beet and fodder beet. (2) Includes other crops not specified elsewhere e.g. miscanthus, fallow land & wild bird cover Area under Crops and Pasture – June 2022 (Source: Crops and Livestock Survey Final Results June 2022, CSO)  (3) The area under grassland may be subject to revision. Area under Crops and Pasture – June 2022 (Source: Crops and Livestock Survey Final Results June 2022, CSO)  Number of Selected Livestock (Source: Crops and Livestock Survey Final Results June 2022, CSO) Total cattle and sheep in each region - June 2022 (Source: Crops and Livestock Survey Final Results June 2022, CSO)  Farm Type by Region, 2020 (Source: Census of Agriculture 2020 – Prelim. Results, CSO) Average Agricultural Area Utilised by Farm Type (2010 – 2020) (Source: Census of Agriculture 2020 - Prelim Results, CSO) Census of Agriculture 2020 Preliminary Results Source: CSO Structure of Farming in Ireland 2016 Source: CSO Rate of Off-farm Employment 2013 - 2023 Source: Teagasc, NFS Final Results 2023  Trends in Average Family Farm Income by System 2013 - 2023 Source: Teagasc, NFS Final Results 2023  Average Family Farm Income by System 2020 - 2023 Source: Teagasc, NFS Final Results 2023  Average Farm Size and Income per hectare 2023 Source: Teagasc, NFS Final Results 2023  Average Farm Size and Income per hectare 2022 Source: Teagasc, National Farm Survey, Final Results 2022  Average Family Farm Income Distribution 2023 Source: Teagasc, National Farm Survey, Final Results 2023 37% of farms have less then 5000 family farm income 12% 5-10000  know the average national farm income (ball park, took it down in previous lecture) Average Family Farm Income Distribution 2022 Source: Teagasc, NFS Final Results 2022 Average Value of Direct Payments and Contribution to Income 2023 Source: Teagasc, National Farm Survey, Final Results 2023 Average Value of Direct Payments and Contribution to Income 2022 Source: Teagasc, NFS Final Results 2022  *a farm business is defined as as being economically viable if their FFI is sufficient to remunerate farm labour at the minimum wage in 2023 (assumed to be €20340 and provide a 5% return on a capital invested on non-land assist Viability of Irish Farms 2023 Source: Teagasc, National Farm Survey, Final Results 2023  Viability of Irish Farms 2022 Source: Teagasc, National Farm Survey, Preliminary Results 2022  Agricultural Land Prices 2022 Source: CSO  Agricultural Land Prices 2021 Source: CSO  Median Price per Acre (€) in State - All Land Types by Year and Region 40000 Source: CSO 35000 30000 Land Border 25000 Dublin Market Mid-East 20000 Midland Mid-West 15000 South-East South-West Agricultural Land 10000 West Sales 5000 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: CSO Land Market Agricultural Land Sales Source: CSO Land Market Agricultural Land Sales Source: CSO Land Market Agricultural Land Sales Agricultural Land Prices Regional Breakdown (by NUTS3 region) in 2022 Source: CSO Agricultural Land Prices Regional Breakdown (by NUTS3 region) in 2021 Source: CSO Volume of land (acres) sold by NUTS3 region in 2022 Source: CSO Commodity Price Volatility Manufacturing Milk Prices (including VAT) (Euro) by Year Milk (per litre), 3.7% fat and 3.3.% protein (Euro) Source: CSO, September 2024  Commodity Price Volatility Manufacturing Milk Prices (including VAT) (Euro) by Year Milk (per litre), 3.7% fat and 3.3.% protein (Euro) Source: CSO, September 2024 STATISTIC Label Year Product UNIT VALUE Manufacturing Milk Prices (including VAT) 2007 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.332 Manufacturing Milk Prices (including VAT) 2008 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.331 Manufacturing Milk Prices (including VAT) 2009 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.226 Manufacturing Milk Prices (including VAT) 2010 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.299 Manufacturing Milk Prices (including VAT) 2011 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.341 Manufacturing Milk Prices (including VAT) 2012 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.313 Manufacturing Milk Prices (including VAT) 2013 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.38 Manufacturing Milk Prices (including VAT) 2014 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.368 Manufacturing Milk Prices (including VAT) 2015 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.284 Manufacturing Milk Prices (including VAT) 2016 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.259 Manufacturing Milk Prices (including VAT) 2017 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.346 Manufacturing Milk Prices (including VAT) 2018 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3272 Manufacturing Milk Prices (including VAT) 2019 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.311 Manufacturing Milk Prices (including VAT) 2020 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.313257607 Manufacturing Milk Prices (including VAT) 2021 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.366674016 Manufacturing Milk Prices (including VAT) 2022 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.5377 Manufacturing Milk Prices (including VAT) 2023 Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3906 Commodity Price Volatility Manufacturing Milk Prices (including VAT) (Euro) by Month Milk (per litre), 3.7% fat and 3.3.% protein (Euro) Source: CSO, September 2024  Commodity Price Volatility Manufacturing Milk Prices (including VAT) (Euro) by Month Milk (per litre), 3.7% fat and 3.3.% protein (Euro) Source: CSO, September 2024 Statistic Label Month Product UNIT VALUE Manufacturing Milk Prices (including VAT) 2020 June Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3111 Manufacturing Milk Prices (including VAT) 2020 July Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3157 Manufacturing Milk Prices (including VAT) 2020 August Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3176 Manufacturing Milk Prices (including VAT) 2020 September Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3227 Manufacturing Milk Prices (including VAT) 2020 October Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3263 Manufacturing Milk Prices (including VAT) 2020 November Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3277 Manufacturing Milk Prices (including VAT) 2020 December Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3278 Manufacturing Milk Prices (including VAT) 2021 January Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3279 Manufacturing Milk Prices (including VAT) 2021 February Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3488 Manufacturing Milk Prices (including VAT) 2021 March Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3581 Manufacturing Milk Prices (including VAT) 2021 April Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3583 Manufacturing Milk Prices (including VAT) 2021 May Milk (per litre), 3.7% fat and 3.3% protein Euro 0.365 Manufacturing Milk Prices (including VAT) 2021 June Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3644 Manufacturing Milk Prices (including VAT) 2021 July Milk (per litre), 3.7% fat and 3.3% protein Euro 0.363 Manufacturing Milk Prices (including VAT) 2021 August Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3663 Manufacturing Milk Prices (including VAT) 2021 September Milk (per litre), 3.7% fat and 3.3% protein Euro 0.375 Manufacturing Milk Prices (including VAT) 2021 October Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3845 Manufacturing Milk Prices (including VAT) 2021 November Milk (per litre), 3.7% fat and 3.3% protein Euro 0.4023 Manufacturing Milk Prices (including VAT) 2021 December Milk (per litre), 3.7% fat and 3.3% protein Euro 0.419 Manufacturing Milk Prices (including VAT) 2022 January Milk (per litre), 3.7% fat and 3.3% protein Euro 0.4316 Manufacturing Milk Prices (including VAT) 2022 February Milk (per litre), 3.7% fat and 3.3% protein Euro 0.4516 Manufacturing Milk Prices (including VAT) 2022 March Milk (per litre), 3.7% fat and 3.3% protein Euro 0.4684 Manufacturing Milk Prices (including VAT) 2022 April Milk (per litre), 3.7% fat and 3.3% protein Euro 0.5012 Manufacturing Milk Prices (including VAT) 2022 May Milk (per litre), 3.7% fat and 3.3% protein Euro 0.5275  Commodity Price Volatility Manufacturing Milk Prices (including VAT) (Euro) by Month Milk (per litre), 3.7% fat and 3.3.% protein (Euro) Source: CSO, September 2024 Statistic Label Month Product UNIT VALUE Manufacturing Milk Prices (including VAT) 2022 June Milk (per litre), 3.7% fat and 3.3% protein Euro 0.5411 Manufacturing Milk Prices (including VAT) 2022 July Milk (per litre), 3.7% fat and 3.3% protein Euro 0.5649 Manufacturing Milk Prices (including VAT) 2022 August Milk (per litre), 3.7% fat and 3.3% protein Euro 0.5596 Manufacturing Milk Prices (including VAT) 2022 September Milk (per litre), 3.7% fat and 3.3% protein Euro 0.562 Manufacturing Milk Prices (including VAT) 2022 October Milk (per litre), 3.7% fat and 3.3% protein Euro 0.5583 Manufacturing Milk Prices (including VAT) 2022 November Milk (per litre), 3.7% fat and 3.3% protein Euro 0.5667 Manufacturing Milk Prices (including VAT) 2022 December Milk (per litre), 3.7% fat and 3.3% protein Euro 0.6206 Manufacturing Milk Prices (including VAT) 2023 January Milk (per litre), 3.7% fat and 3.3% protein Euro 0.565 Manufacturing Milk Prices (including VAT) 2023 February Milk (per litre), 3.7% fat and 3.3% protein Euro 0.5017 Manufacturing Milk Prices (including VAT) 2023 March Milk (per litre), 3.7% fat and 3.3% protein Euro 0.442 Manufacturing Milk Prices (including VAT) 2023 April Milk (per litre), 3.7% fat and 3.3% protein Euro 0.4056 Manufacturing Milk Prices (including VAT) 2023 May Milk (per litre), 3.7% fat and 3.3% protein Euro 0.402 Manufacturing Milk Prices (including VAT) 2023 June Milk (per litre), 3.7% fat and 3.3% protein Euro 0.387 Manufacturing Milk Prices (including VAT) 2023 July Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3678 Manufacturing Milk Prices (including VAT) 2023 August Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3459 Manufacturing Milk Prices (including VAT) 2023 September Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3453 Manufacturing Milk Prices (including VAT) 2023 October Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3425 Manufacturing Milk Prices (including VAT) 2023 November Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3593 Manufacturing Milk Prices (including VAT) 2023 December Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3723 Manufacturing Milk Prices (including VAT) 2024 January Milk (per litre), 3.7% fat and 3.3% protein Euro 0.3857 Manufacturing Milk Prices (including VAT) 2024 February Milk (per litre), 3.7% fat and 3.3% protein Euro 0.4133 Manufacturing Milk Prices (including VAT) 2024 March Milk (per litre), 3.7% fat and 3.3% protein Euro 0.4179 Manufacturing Milk Prices (including VAT) 2024 April Milk (per litre), 3.7% fat and 3.3% protein Euro 0.4153 Manufacturing Milk Prices (including VAT) 2024 May Milk (per litre), 3.7% fat and 3.3% protein Euro 0.4217 Manufacturing Milk Prices (including VAT) 2024 June Milk (per litre), 3.7% fat and 3.3% protein Euro 0.4322 Commodity Price Volatility Cattle Price Per Head by Month (Feb 2014 – Feb 2024) CATTLE – BULLOCKS (350 – 399 kg) Source: CSO, September 2024 a lot of variability  Commodity Price Volatility Cattle Price Per Head by Month CATTLE – BULLOCKS (350 – 399 kg) Source: CSO, September 2024 Statistic Label Month Type of Cattle UNIT VALUE Cattle Price per Head 2021 January Bullocks 350-399kg Euro 753.08 Cattle Price per Head 2021 February Bullocks 350-399kg Euro 739.47 Cattle Price per Head 2021 March Bullocks 350-399kg Euro 791.38 Cattle Price per Head 2021 April Bullocks 350-399kg Euro 780.99 Cattle Price per Head 2021 May Bullocks 350-399kg Euro 780.95 Cattle Price per Head 2021 June Bullocks 350-399kg Euro 813.79 Cattle Price per Head 2021 July Bullocks 350-399kg Euro 816.7 Cattle Price per Head 2021 August Bullocks 350-399kg Euro 757.59 Cattle Price per Head 2021 September Bullocks 350-399kg Euro 790.3 Cattle Price per Head 2021 October Bullocks 350-399kg Euro 740.77 Cattle Price per Head 2021 November Bullocks 350-399kg Euro 765.85 Cattle Price per Head 2021 December Bullocks 350-399kg Euro 785.48 Cattle Price per Head 2022 January Bullocks 350-399kg Euro 842.33 Cattle Price per Head 2022 February Bullocks 350-399kg Euro 880.64 Cattle Price per Head 2022 March Bullocks 350-399kg Euro 853.68 Cattle Price per Head 2022 April Bullocks 350-399kg Euro 877.08 Cattle Price per Head 2022 May Bullocks 350-399kg Euro 894.31 Cattle Price per Head 2022 June Bullocks 350-399kg Euro 905.02 Cattle Price per Head 2022 July Bullocks 350-399kg Euro 823.48 Cattle Price per Head 2022 August Bullocks 350-399kg Euro 776.61 Cattle Price per Head 2022 September Bullocks 350-399kg Euro 745.25  Commodity Price Volatility Cattle Price Per Head by Month CATTLE – BULLOCKS (350 – 399 kg) Source: CSO, September 2024 Statistic Label Month Type of Cattle UNIT VALUE Cattle Price per Head 2022 October Bullocks 350-399kg Euro 755.63 Cattle Price per Head 2022 November Bullocks 350-399kg Euro 803.45 Cattle Price per Head 2022 December Bullocks 350-399kg Euro 826.26 Cattle Price per Head 2023 January Bullocks 350-399kg Euro 908.49 Cattle Price per Head 2023 February Bullocks 350-399kg Euro 937.92 Cattle Price per Head 2023 March Bullocks 350-399kg Euro 985.7 Cattle Price per Head 2023 April Bullocks 350-399kg Euro 981.4 Cattle Price per Head 2023 May Bullocks 350-399kg Euro 964.94 Cattle Price per Head 2023 June Bullocks 350-399kg Euro 851.07 Cattle Price per Head 2023 July Bullocks 350-399kg Euro 830.7 Cattle Price per Head 2023 August Bullocks 350-399kg Euro 853.32 Cattle Price per Head 2023 September Bullocks 350-399kg Euro 863.68 Cattle Price per Head 2023 October Bullocks 350-399kg Euro 813.67 Cattle Price per Head 2023 November Bullocks 350-399kg Euro 848.98 Cattle Price per Head 2023 December Bullocks 350-399kg Euro 874.66 Cattle Price per Head 2024 January Bullocks 350-399kg Euro 907.02 Cattle Price per Head 2024 February Bullocks 350-399kg Euro 955.17 Cattle Price per Head 2024 March Bullocks 350-399kg Euro 988.25 Cattle Price per Head 2024 April Bullocks 350-399kg Euro 1006.44 Cattle Price per Head 2024 May Bullocks 350-399kg Euro 986.31 Cattle Price per Head 2024 June Bullocks 350-399kg Euro 878 Commodity Price Volatility Cattle Price Per Head by Month (Feb 2014 – Feb 2024) CATTLE – HEIFERS (350 – 399 kg) Source: CSO, September 2024 a lot of variability  Commodity Price Volatility Cattle Price Per Head by Month CATTLE – HEIFERS (350 – 399 kg) Source: CSO, September 2024 Statistic Label Month Type of Cattle UNIT VALUE Cattle Price per Head 2021 January Heifers 350-399kg Euro 798.03 Cattle Price per Head 2021 February Heifers 350-399kg Euro 814 Cattle Price per Head 2021 March Heifers 350-399kg Euro 827.74 Cattle Price per Head 2021 April Heifers 350-399kg Euro 845.05 Cattle Price per Head 2021 May Heifers 350-399kg Euro 796.61 Cattle Price per Head 2021 June Heifers 350-399kg Euro 844.54 Cattle Price per Head 2021 July Heifers 350-399kg Euro 837.85 Cattle Price per Head 2021 August Heifers 350-399kg Euro 801.61 Cattle Price per Head 2021 September Heifers 350-399kg Euro 804.71 Cattle Price per Head 2021 October Heifers 350-399kg Euro 777.37 Cattle Price per Head 2021 November Heifers 350-399kg Euro 762.83 Cattle Price per Head 2021 December Heifers 350-399kg Euro 806 Cattle Price per Head 2022 January Heifers 350-399kg Euro 857.22 Cattle Price per Head 2022 February Heifers 350-399kg Euro 910.01 Cattle Price per Head 2022 March Heifers 350-399kg Euro 909.63 Cattle Price per Head 2022 April Heifers 350-399kg Euro 908.84 Cattle Price per Head 2022 May Heifers 350-399kg Euro 959.75 Cattle Price per Head 2022 June Heifers 350-399kg Euro 934.83 Cattle Price per Head 2022 July Heifers 350-399kg Euro 854.41 Cattle Price per Head 2022 August Heifers 350-399kg Euro 850.31 Cattle Price per Head 2022 September Heifers 350-399kg Euro 814.37  Commodity Price Volatility Cattle Price Per Head by Month CATTLE – HEIFERS (350 – 399 kg) Source: CSO, September 2024 Statistic Label Month Type of Cattle UNIT VALUE Cattle Price per Head 2022 October Heifers 350-399kg Euro 808.96 Cattle Price per Head 2022 November Heifers 350-399kg Euro 817.83 Cattle Price per Head 2022 December Heifers 350-399kg Euro 909.07 Cattle Price per Head 2023 January Heifers 350-399kg Euro 959.85 Cattle Price per Head 2023 February Heifers 350-399kg Euro 992 Cattle Price per Head 2023 March Heifers 350-399kg Euro 1033.47 Cattle Price per Head 2023 April Heifers 350-399kg Euro 999.03 Cattle Price per Head 2023 May Heifers 350-399kg Euro 988.01 Cattle Price per Head 2023 June Heifers 350-399kg Euro 924.18 Cattle Price per Head 2023 July Heifers 350-399kg Euro 900 Cattle Price per Head 2023 August Heifers 350-399kg Euro 866.2 Cattle Price per Head 2023 September Heifers 350-399kg Euro 867.59 Cattle Price per Head 2023 October Heifers 350-399kg Euro 835.32 Cattle Price per Head 2023 November Heifers 350-399kg Euro 860.75 Cattle Price per Head 2023 December Heifers 350-399kg Euro 893.41 Cattle Price per Head 2024 January Heifers 350-399kg Euro 955.5 Cattle Price per Head 2024 February Heifers 350-399kg Euro 1032.03 Cattle Price per Head 2024 March Heifers 350-399kg Euro 994.5 Cattle Price per Head 2024 April Heifers 350-399kg Euro 999.81 Cattle Price per Head 2024 May Heifers 350-399kg Euro 969.18 Cattle Price per Head 2024 June Heifers 350-399kg Euro 925.54  Commodity Price Volatility Feedstuff Euro per Tonne by Month (Feb. 2014 – May 2024) Cattle Fattening Meal (13 – 15% Protein) Source: CSO, August 2024  Commodity Price Volatility Feedstuff Euro per Tonne by Month Cattle Fattening Meal (13 – 15% Protein) Source: CSO, August 2024 STATISTIC Label Month Type of Feedstuff UNIT VALUE Feed Stuff Price 2021 February Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 297 Feed Stuff Price 2021 March Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 301 Feed Stuff Price 2021 April Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 305 Feed Stuff Price 2021 May Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 311 Feed Stuff Price 2021 June Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 313 Feed Stuff Price 2021 July Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 317 Feed Stuff Price 2021 August Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 318 Feed Stuff Price 2021 September Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 325 Feed Stuff Price 2021 October Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 329 Feed Stuff Price 2021 November Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 333 Feed Stuff Price 2021 December Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 345 Feed Stuff Price 2022 January Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 356 Feed Stuff Price 2022 February Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 363 Feed Stuff Price 2022 March Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 370 Feed Stuff Price 2022 April Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 392 Feed Stuff Price 2022 May Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 412 Feed Stuff Price 2022 June Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 418 Feed Stuff Price 2022 July Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 425 Feed Stuff Price 2022 August Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 433 Feed Stuff Price 2022 September Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 433  Commodity Price Volatility Feedstuff Euro per Tonne by Month Cattle Fattening Meal (13 – 15% Protein) Source: CSO, August 2024 STATISTIC Label Month Type of Feedstuff UNIT VALUE Feed Stuff Price 2022 October Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 440 Feed Stuff Price 2022 November Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 445 Feed Stuff Price 2022 December Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 446 Feed Stuff Price 2023 January Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 448 Feed Stuff Price 2023 February Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 448 Feed Stuff Price 2023 March Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 447 Feed Stuff Price 2023 April Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 445 Feed Stuff Price 2023 May Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 431 Feed Stuff Price 2023 June Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 417 Feed Stuff Price 2023 July Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 411 Feed Stuff Price 2023 August Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 399 Feed Stuff Price 2023 September Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 392 Feed Stuff Price 2023 October Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 382 Feed Stuff Price 2023 November Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 381 Feed Stuff Price 2023 December Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 380 Feed Stuff Price 2024 January Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 379 Feed Stuff Price 2024 February Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 378 Feed Stuff Price 2024 March Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 368 Feed Stuff Price 2024 April Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 365 Feed Stuff Price 2024 May Cattle fattening nuts and cubes (13-15% protein) Euro per Tonne 358  Commodity Price Volatility Feedstuff Euro per Tonne by Month (Feb 2014 – Feb 2024) Ewe Feed Coarse (16 – 20% Protein) Source: CSO, August 2024  Commodity Price Volatility Feedstuff Euro per Tonne by Month Ewe Feed Coarse (16 – 20% Protein) Source: CSO, August 2024 STATISTIC Label Month Type of Feedstuff UNIT VALUE Feed Stuff Price 2021 February Ewe feed coarse (16-20% protein) Euro per Tonne 307 Feed Stuff Price 2021 March Ewe feed coarse (16-20% protein) Euro per Tonne 310 Feed Stuff Price 2021 April Ewe feed coarse (16-20% protein) Euro per Tonne 314 Feed Stuff Price 2021 May Ewe feed coarse (16-20% protein) Euro per Tonne 314 Feed Stuff Price 2021 June Ewe feed coarse (16-20% protein) Euro per Tonne 316 Feed Stuff Price 2021 July Ewe feed coarse (16-20% protein) Euro per Tonne 319 Feed Stuff Price 2021 August Ewe feed coarse (16-20% protein) Euro per Tonne 319 Feed Stuff Price 2021 September Ewe feed coarse (16-20% protein) Euro per Tonne 329 Feed Stuff Price 2021 October Ewe feed coarse (16-20% protein) Euro per Tonne 335 Feed Stuff Price 2021 November Ewe feed coarse (16-20% protein) Euro per Tonne 336 Feed Stuff Price 2021 December Ewe feed coarse (16-20% protein) Euro per Tonne 343 Feed Stuff Price 2022 January Ewe feed coarse (16-20% protein) Euro per Tonne 357 Feed Stuff Price 2022 February Ewe feed coarse (16-20% protein) Euro per Tonne 368 Feed Stuff Price 2022 March Ewe feed coarse (16-20% protein) Euro per Tonne 379 Feed Stuff Price 2022 April Ewe feed coarse (16-20% protein) Euro per Tonne 402 Feed Stuff Price 2022 May Ewe feed coarse (16-20% protein) Euro per Tonne 423 Feed Stuff Price 2022 June Ewe feed coarse (16-20% protein) Euro per Tonne 427 Feed Stuff Price 2022 July Ewe feed coarse (16-20% protein) Euro per Tonne 436 Feed Stuff Price 2022 August Ewe feed coarse (16-20% protein) Euro per Tonne 439 Feed Stuff Price 2022 September Ewe feed coarse (16-20% protein) Euro per Tonne 438  Commodity Price Volatility Feedstuff Euro per Tonne by Month Ewe Feed Coarse (16 – 20% Protein) Source: CSO, August 2024 Feed Stuff Price 2022 October Ewe feed coarse (16-20% protein) Euro per Tonne 444 Feed Stuff Price 2022 November Ewe feed coarse (16-20% protein) Euro per Tonne 457 Feed Stuff Price 2022 December Ewe feed coarse (16-20% protein) Euro per Tonne 459 Feed Stuff Price 2023 January Ewe feed coarse (16-20% protein) Euro per Tonne 458 Feed Stuff Price 2023 February Ewe feed coarse (16-20% protein) Euro per Tonne 458 Feed Stuff Price 2023 March Ewe feed coarse (16-20% protein) Euro per Tonne 457 Feed Stuff Price 2023 April Ewe feed coarse (16-20% protein) Euro per Tonne 455 Feed Stuff Price 2023 May Ewe feed coarse (16-20% protein) Euro per Tonne 443 Feed Stuff Price 2023 June Ewe feed coarse (16-20% protein) Euro per Tonne 432 Feed Stuff Price 2023 July Ewe feed coarse (16-20% protein) Euro per Tonne 425 Feed Stuff Price 2023 August Ewe feed coarse (16-20% protein) Euro per Tonne 416 Feed Stuff Price 2023 September Ewe feed coarse (16-20% protein) Euro per Tonne 408 Feed Stuff Price 2023 October Ewe feed coarse (16-20% protein) Euro per Tonne 398 Feed Stuff Price 2023 November Ewe feed coarse (16-20% protein) Euro per Tonne 398 Feed Stuff Price 2023 December Ewe feed coarse (16-20% protein) Euro per Tonne 396 Feed Stuff Price 2024 January Ewe feed coarse (16-20% protein) Euro per Tonne 396 Feed Stuff Price 2024 February Ewe feed coarse (16-20% protein) Euro per Tonne 396 Feed Stuff Price 2024 March Ewe feed coarse (16-20% protein) Euro per Tonne 394 Feed Stuff Price 2024 April Ewe feed coarse (16-20% protein) Euro per Tonne 392 Feed Stuff Price 2024 May Ewe feed coarse (16-20% protein) Euro per Tonne 382  Commodity Price Volatility Feedstuff Euro per Tonne by Month (Feb 2014 – May 2024) Dairy Meal (16 – 18% Protein) Source: CSO, August 2024 Commodity Price Volatility Feedstuff Euro per Tonne by Month Dairy Meal (16 – 18% Protein) Source: CSO, August 2024  Commodity Price Volatility Fertiliser Euro per Tonne by Month (May 1980 – May 2023) CAN (27.5% N) Source: CSO, August 2024  Commodity Price Volatility Fertiliser Euro per Tonne by Month (May 1980 – May 2023) CAN (27.5% N) Source: CSO, August 2024  Commodity Price Volatility Fertiliser Euro per Tonne by Month CAN (27.5% N) Source: CSO, August 2024 STATISTIC Label Month Type of Fertiliser UNIT VALUE Fertiliser Price 2020 February Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 250 Fertiliser Price 2020 March Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 249 Fertiliser Price 2020 April Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 249 Fertiliser Price 2020 May Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 244 Fertiliser Price 2020 June Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 239 Fertiliser Price 2020 July Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 236 Fertiliser Price 2020 August Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 234 Fertiliser Price 2020 September Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 231 Fertiliser Price 2020 October Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 231 Fertiliser Price 2020 November Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 231 Fertiliser Price 2020 December Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 230 Fertiliser Price 2021 January Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 229 Fertiliser Price 2021 February Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 242 Fertiliser Price 2021 March Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 262 Fertiliser Price 2021 April Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 281 Fertiliser Price 2021 May Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 296 Fertiliser Price 2021 June Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 299 Fertiliser Price 2021 July Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 305 Fertiliser Price 2021 August Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 316  Commodity Price Volatility Fertiliser Euro per Tonne by Month CAN (27.5% N) Source: CSO, August 2024 STATISTIC Label Month Type of Fertiliser UNIT VALUE Fertiliser Price 2021 September Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 324 Fertiliser Price 2021 October Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 384 Fertiliser Price 2021 November Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 395 Fertiliser Price 2021 December Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 499 Fertiliser Price 2022 January Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 637 Fertiliser Price 2022 February Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 697 Fertiliser Price 2022 March Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 799 Fertiliser Price 2022 April Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 970 Fertiliser Price 2022 May Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 964 Fertiliser Price 2022 June Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 878 Fertiliser Price 2022 July Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 841 Fertiliser Price 2022 August Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 846 Fertiliser Price 2022 September Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 861 Fertiliser Price 2022 October Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 883 Fertiliser Price 2022 November Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 883 Fertiliser Price 2022 December Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 870 Fertiliser Price 2023 January Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 850 Fertiliser Price 2023 February Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 815 Fertiliser Price 2023 March Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 746  Commodity Price Volatility Fertiliser Euro per Tonne by Month CAN (27.5% N) Source: CSO, August 2024 STATISTIC Label Month Type of Fertiliser UNIT VALUE Fertiliser Price 2023 April Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 609 Fertiliser Price 2023 May Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 520 Fertiliser Price 2023 June Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 405 Fertiliser Price 2023 July Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 382 Fertiliser Price 2023 August Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 384 Fertiliser Price 2023 September Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 388 Fertiliser Price 2023 October Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 390 Fertiliser Price 2023 November Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 388 Fertiliser Price 2023 December Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 391 Fertiliser Price 2024 January Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 390 Fertiliser Price 2024 February Calcium Ammonium Nitrate (27.5% N) Euro per Tonne 388  Commodity Price Volatility Agricultural Input Price Indices by Month (Base 2020=100) COMPOUND FEEDING STUFFS FOR PIGS Source: CSO, August 2024  Commodity Price Volatility Agricultural Input Price Indices by Month (Base 2020=100) COMPOUND FEEDING STUFFS FOR POULTRY Source: CSO, August 2024  Commodity Price Volatility Agricultural Output Price Indices by Month (Base 2020=100) SHEEP Source: CSO, August 2024  Commodity Price Volatility Agricultural Output Price Indices by Month (Base 2020=100) PIGS Source: CSO, August 2024  Commodity Price Volatility Agricultural Output Price Indices by Month (Base 2020=100) CEREALS INCLUDING SEEDS Source: CSO, August 2024  Commodity Price Volatility Agricultural Output Price Indices by Month (Base 2020=100) POTATOES INCLUDING SEEDS Source: CSO, August 2024  Commodity Price Volatility Agricultural Input Price Indices by Month (Base 2020=100) ELECTRICITY Source: CSO, August 2024  Commodity Price Volatility Agricultural Input Price Indices by Month (Base 2015=100) MOTOR FUEL Source: CSO, August 2023 Farm Business Management  Sole trader – Vast majority of Irish farms operate under sole trader structure – Advantage: flexible, few legal formalities Farm Partnership Business – Family-based partnerships, e.g. siblings, Organisation successor-parent, etc. These ‘informal’ family partnerships operate as sole trader model – Formal registered partnerships - legal agreement/contract between partners 500-600 currently: mainly milk production partnerships Limited company – Small but growing number Key drivers = tax considerations (12.5% corporation tax rate) + limited liability But there are disadvantages also! 12.5% is only on trading income  A complicated and challenging task – Many factors to contend including … Weather Economy Farm Price volatility Management Price-cost squeeze Policy reform New technologies Shifts in global supply and demand A very competitive environment Changing business climate of farming – Manager requires strong external and strong internal focus  Makeham (1968) ‘Farm Management Economics’ - two major challenges Farm facing farmers: Management – – How to incorporate new technology profitably into the existing business In Summary organisation – How to be sufficiently flexible, mentally and financially, to adjust resource management to meet both changed economic circumstances and widely varying climatic conditions  Involves decisions concerning the (optimum) use of resources Examining the scope and opportunities Farm for improving profits Business Management Significant differences among farms (according to resource levels, structure/type, performance, etc) Efficient farm management: “Organisation and operation of the farm business to obtain maximum continuous profit from the resources available to the farmer and which he/she is willing to use in his/her business”  Organisation of the farm business – Business type and structure – Scale of enterprises Key Operational features of management – Technical efficiency Aspects – Decisions regarding day-to-day tasks Maximum continuous profit – System of farming practices that maximise long-run profit – We also must recognise other goals of the farm operator Farm management NOT just about keeping accounts  Farm Management “The process by which resources and situations are manipulated by the farm manager in trying, with less than full information, to achieve his goals” J. L. Dillon (1980) - Journal of Agricultural Economics, 31 (2) p.258  Aspects of the Farm Management Definition Farm management is a process The dynamic nature of the farm system and its environment The farmer confronts situations (events) as well as resources The active role of manipulation as opposed to the passive role of organising and controlling The uncertain nature of the farmer’s decisions – attempted rather than sure achievement of objectives Referring to goals rather than profit 78  79 What Management Involves Successful MANAGEMENT should being with SETTING OBJECTIVES It then involves PLANNING DECISION MAKING CONTROLLING in pursuit of to convert plans into in an endeavour to objectives action meet objectives These processes are applied to the following main areas of a business PRODUCTION MARKETING FINANCING STAFFING It all takes place within an Economic, political, social and legal environment  What to produce? – Selection of optimum combination of enterprises – Has the farmer any advantages for particular types of production? – Resource allocation according to Principle of Equimarginal Returns Decisions How much to produce? – Dictated by the Law of Diminishing Returns How to produce it? – Least cost combination of inputs When and where to buy and sell? – Seasonal price profile for most commodities – Choice of market outlet Where to invest capital – land purchase, buildings, machinery, non-farm option, etc Types of Decisions Strategic – Decisions involving formulation of policy for the farm business – Long term/Enduring e.g. decision to purchase additional land longer tern POA is a strategic decision Tactical – Operational/Short-term , i.e. day-to-day decisions e.g. choice of concentrate feeding level 81  82 Decision-Making Process Definition of Problem or Opportunity Resource External Forces, e.g. Position Borrowing Limits, of Farm Interest Rate, Gov't Policy Farm Family Specification Outcome of Goals Outcome Alternative of Evaluated Implemented Alternatives Expectations about Future Prices and Yields Implementation Analysis and of Selected Evaluation of Random Alternative Alternatives Factors of the Economic & Natural Environment, e.g. Weather, Marketing Source: Adapted from Patrick (1966) Steps in Rational Decision Making  Recognise the existence of a problem, choice or opportunity  Collect relevant information and analyse present circumstances  Specify possible solutions and examine course of action  Decide on most appropriate course of action  Implement the decision  Evaluate what occurs  Accept responsibility for the consequences 83