Growing Organics: A profitable suckler system in Co. Mayo

Oliver and Anna Dixon began looking at organic farming as an option in 2010. The high costs associated with conventional farming had become prohibitive. After careful consideration, the decision was made to take the organic option.
An overview of their organic farming system was provided at a recent Growing Organics walk held on their farm. In 2010, the farm entered conversion to organic production and full organic status was achieved in May 2012. On the farm today, there is a suckler enterprise of 15 spring-calving suckler cows .All progeny, along with 10-15 weanlings purchased annually, are finished of red clover silage, with no concentrates fed in the finishing phase.
The holding is made up of two blocks of land, one home farm block of 26.54ha and a 17.15ha out-farm at Ballyglass, Claremorris, giving a grand total of 43.69ha of permanent pasture. In 2023, 4.85ha of red clover silage was made, 4.85ha of hay and 6.5ha of grass silage was saved for winter feed.
Cow breeds and management
The cows are Angus x Simmental types and are currently bred to a Simmental stock bull for two main reasons. Firstly, Oliver wants to increase the carcass weights of his finished stock. Secondly, he wants to maintain a closed herd predominately and breed his own replacements from his own cows. Maiden heifers are mated to an Angus bull, with every effort being made to calve down at 24-26 months of age.
Calving is planned to start on April 1, as the weather is improving and cows can calve outdoors or can be moved out quickly with their calves. This timing of calving reduces the chances of scour and other associated diseases at calving time.
Cows are mated in July/August, with weaning occurring in November. Over the winter, cows are fed on grass silage, while weanlings receive ad-lib red clover silage. In mid-February, weanlings are turned out to grass, depending on weather conditions, and graze the silage paddocks. The grass / red clover fields are not grazed by cattle.
Cattle sales
Oliver plans his sales and aims for two lots each year, one in April and the other in September. In 2022, 12 bullocks were finished - five in April and seven in September. In addition, eight heifers were finished – five in April and three in September.
Last year, the steers achieved an average carcass weight of 351kg, while the average carcass weight for heifers was 318kg. The ages of all animals ranged between 24.6 months to 32.4 months, with the majority being R-grade at 4- to 4+ fat scoring. In terms of pricing, the average base price for both lots of cattle was €5.60/kg. The big difference between Oliver and many conventional finishers is that when he is paid for his stock, large amounts of the payment is not taken out to pay for feed and fertiliser, the two biggest variable costs on drystock farms.
Grazing management
Cows and young stock are grazed on a rotational basis around the farm using a paddock system. The paddock system has many benefits in grassland management. It gives farmers control over both the animals and the grassland, making sure animals graze out fields effectively, helping control weeds that can be an issue in an organic system. It also gives the farmer the flexibility to remove paddocks going ‘strong’ and get them back in rotation quickly after taking bales. The yearling and finishing stock are grazed on the out farm with the finishers given priority access to grass, grazing ahead of the yearling stock, to avail of the best grass and gain more weight faster to finish more quickly.
Oliver Dixon explains the important role clover plays on his farm as part of the Growing Organics farm walk
Red clover and multi-species swards
Commenting on the grass / red clover silage, Oliver said: “That’s the meal, that’s the profit, you can only control what happens inside your farm gate.”
The red clover silage is the driver of profitability on Oliver and Anna’s farm. If that crop was not grown, the farm would be entirely dependent on direct payments to generate an income. Oliver established a red clover grass sward in 2013 and on a second field in 2019. The table below shows the yields from both fields in 2022.
Table 1: Yields from red clover silage fields in 2022
Date cut | Field 1 (2013 reseed) | Field 2 (2019 reseed) |
---|---|---|
Cut 1 – May 10th | 9 bales/ac | 8 bales/ac |
Cut 2 – July 7th | 3 bales/ac | 4 bales/ac |
Cut 3 – August 12th | 2 bales/ac | 2 bales/ac |
Cut 4 – September 16th | 1 bales/ac | 2 bales/ac |
Total bales/ac | 15 bales/ac | 16 bales/ac |
Oliver and Anna are going to sow some multi-species sward in the coming years. Multi-species swards contain clovers, ryegrasses, chicory and plantains. They are less dependent on fertilisers, they help improve drainage and are known to make minerals more available for grazing stock. They also have some anthelminthic beneficial properties.
Financial performance
Organic farming systems are no different to any other enterprise. In order for any farm enterprise to be profitable, the returns from the enterprise must be greater than the costs of production. Outlined below is the physical and financial data for the farm in 2022 based on Oliver’s Teagasc e-Profit monitor analysis.
Table 2: Financial performance
Teagasc eProfit Monitor – Oliver Dixon 2022 | Teagasc National Farm Survey (Preliminary Results 2022) | |
---|---|---|
Enterprise type | Cattle | Cattle rearing |
Land (ha) | 43.69 | 31.3 |
Stocking rate (LU/ha) | 0.87 | 1.11 |
Gross output | 688 | 985 |
Gross margin | 480 | 514 |
Net margin (excluding direct payments) | 130 | -150 |
Net margin (including direct payments) | 952 | 300 |
Including direct payments, Oliver and Anna’s farm generated a net margin of €952/ha in 2022. The big driver in profitability on the farm is grass / red clover silage. Without it, the variable costs would increase by €400-500/head, eroding any profit present.
The overall aim is to maintain good levels of production. In 2022, the stocking rate was moderate, but Oliver intends to increase the stocking rate in the next few years to over 1.1LU/ha. 2022 variable costs were slightly higher than previous years, as there was additional bales of silage harvested.
Farmer mental and emotional health and wellbeing
Oliver and Anna put a strong emphasis on the importance of maintaining positive mental and emotional health and wellbeing. The farm is organised and managed to ensure workload is sustainable and that help is sought during busy periods.
Oliver is aware of the impact of long working hours on mental, emotional and physical health. Oliver and Anna ensure they get adequate rest, eat a healthy diet and are proactive in maintaining a good work life balance.
Results from a nationwide survey by Stapleton, Russell, Markey & McHugh (2022) found 23.4% of Irish farmers considered at-risk for suicide. Farm stress was also found to be associated with higher suicidal ideation and lower wellbeing.
The top three stressors for Irish farmers were government policies designed to reduce climate change, outsiders not understanding farming and concern over the future of the farm. Oliver is an advocate of the power of talking to help maintain positive mental and emotional wellbeing. Sharing concerns with family members, friends, farm advisors or fellow farmers through talking brings a strong feeling of support. When concerns exist, it is important to be open and have the courage to talk about them.
Organic Capital Investment Scheme
The Organic Capital Investment Scheme, under the Targeted Agricultural Modernisation Scheme (TAMS 3), is designed to financially support organic farmers to invest in facilities and equipment to improve farm efficiency, management and safety.
It provides an incentive to organic farmers who are current participants of the Organic Farming Scheme to upgrade their agricultural buildings and equipment, by providing an increased level of support to meet the considerable capital costs associated with the establishment of their enterprises.
Grant aid is paid at the rate of 40% for licensed organic operators and 60% for farmers who are also current participants of the Organic Farming Scheme up to the applicable TAMS 3 maximum investment ceiling of €90,000 per holding.
In the case of an application by two or more eligible partners in a partnership registered on this Department’s Register of Farm Partnership the maximum eligible investment ceiling shall be increased to €160,000.
Multiple applications per tranche are permissible. Oliver has availed of funding under TAMS II to purchase a disc mower. Oliver has plans to apply to the Organic Capital Investment Scheme for funding to help purchase a new bale shear. He is also working closely with his Teagasc advisor regarding plans for other investments in facilities and equipment for his farm.
This article was adapted from the Growing Organics booklet from the farm walk. For more information on organics, specifically the services which Teagasc provides, visit here.