Putting hill farms on a sustainable path to the future
Hill farms, by their nature, are low input, low output enterprises that are very dependent on direct payments to remain viable. Andy Ryder, Drystock Advisor, Teagasc Westport, shares steps to boost profits, flock performance & sustainability, ensuring hill farms thrive for the next generation.
A lot of the farmland in these areas is designated habitats (SAC,SPA,NHA) which brings its own restrictions to these farms. The age profile of farmers tends to be older and the majority of younger farmers are farming part-time. Every hill farm is different in terms of size, land type and area of commonage farmed. These farms need to reflect on their individual circumstances and avail of the supports that will future proof their farm going forward.
Farm Profitability
Assess the current profitability of the farm by sitting down with your agricultural advisor or accountant. Tease out what is working and what areas that need to be improved.
Flock Performance
Hill flock stocking rates are low due to the type of land farmed. Ewe performance is a better indicator of flock performance. Barren rate, lambs reared per ewe and weaning weight of lambs are good indicators of how the flock is performing. Improvement in ewe performance allows some individual flocks to mate more ewes with cross bred rams while still having sufficient female lambs to maintain replacement rates. Together with a robust culling policy, this will boost sales.
Breeding Groups
The natural follow on from improved flock performance is to try to demand a premium for your stock. By joining one of the many hill sheep breeding groups, access to a large group of buyers looking for a product you are selling can be gained. There is extra work associated with selling quality breeding stock but the rewards of higher prices and the knowledge that you are producing quality stock cannot be underestimated.
Habitat Maintenance and Improvement
Existing environmental schemes are rewarding farmers based on the quality of habitats that exist on farms. Future schemes will be likely to follow similar lines. Farmers should seek to future proof their eligibility for these schemes by being proactive now and availing of any extra funding such as Non-Productive Investments (NPIs) and Local Actions Payments from the current ACRES scheme to improve current habitats on their farms.
Improve Farm Infrastructure
Some farms need to modernise their handling and housing facilities to make farming less labour intensive. In the future, there will be less time and less help available on hill farms. Assess any deficiencies on the farm and put a 5 year plan in place to try to address it. Avail of any possible supports available, i.e. TAMS 3 scheme, Sheep schemes. Assess if the organic scheme is appropriate for your farm? Could EIP schemes be suitable for your farm?
Succession
Succession is a substantial issue on hill farms. Farmers need to be proactive themselves. It is crucial to have a plan in place for the future of the farm. Having a successor involved in the enterprise as early as possible has great benefits for the farm. New ideas, extra labour and a willingness to spend time and money on the farm will all help maintain the farm into the future. Support is available to help farmers and their families with the difficult subject of farm transfer and succession planning. Agricultural relief, stamp duty relief and stock relief available to young trained farmers should be looked, along with availing of the Young Farmers' Scheme (CISYF).
Education
Encourage the successor to complete a suitable agricultural education course to avail of some of the schemes and tax reliefs in the future. Research on hill farming systems and habitat improvement is ongoing. Going to open days and attending environmental training, will help build a picture in terms of where policy is going, and will support you to make decisions about the future of your farm.