Sit down and examine your costs

Before the main spring cropping season kicks into gear, tillage farmers have been encouraged to sit down and examine their costs of production.

Helping in this regard is the Teagasc Crops and Returns 2025 publication, available to download on the Teagasc website. When used to examine costs of production, it can provide an indicative guide to crop margins.

Complied by Teagasc Crops Specialists, Ciaran Collins and Shay Phelan, the publication provides guideline costs for the main cereal crops, both winter and spring, along with non-cereal and forage crops such as beet, maize, potatoes, beans and peas or winter oilseed rape.

“Within the Teagasc Crops Costs and Returns 2025,” Ciaran Collins explained, “we use guideline costs for materials, machinery costs and fixed costs. Before committing to sow this spring, farmers need to undertake a thorough appraisal of the costs of running their businesses.

“Land suitability, rotation, risk avoidance and husbandry skills must also be considered when setting targeted yields for you farm.”

Continuing on this, Shay Phelan noted: “Variability, both in terms of costs and yields, have become an all too common occurrence on tillage farms. When examining potential yields for your farm, we’d suggest revisiting previous crop history, particularly the yields obtained, and working off a three year average figure to account for annual variability.”

Along with assessing crop margins through the Crops Costs and Returns 2025, Ciaran Collins added: “We’d encourage all growers to complete a full financial appraisal of their business using the Teagasc Profit Monitor and Teagasc Machinery Costs Calculator. Doing so will allow you to benchmark the performance of your farm and compare it on a year to year basis – a key practice in pinpointing the strengths and weaknesses of your tillage operation.”

As detailed within the Crops Costs and Returns 2025, machinery continues to be a significant expense on tillage farms. On this Shay Phelan noted: “The cost of machinery is the second largest cost on tillage farms, typically about 25-30% of total growing costs. Machinery costs on tillage farms can be analysed using the Teagasc Machinery Cost Calculator which is available from your local Teagasc Tillage Advisor.”

For further details and to download the Crops Costs and Returns 2025 publication, click here.