Relevant Matter
Public policy or programme
Public Policy Area
Agriculture
Period
1 Sep, 2025 to 31 Dec, 2025
Specific Details
Challenges facing the Tillage Sector
Intended results
To highlight the challenges facing the tillage sector in this country at the present time are numerous, systemic and complex. The area devoted to tillage, as a percentage of the utilisable agricultural area, has been in significant decline in the post-war period due to fundamental changes in the Irish agricultural system.
To highlight that a target under the Climate Action Plan to increase the tillage area to 350,000ha by 2025 and 400,000ha by 2030, without coordinated action, the 400,000ha target is all but a pipedream at the present time. The tillage sector has faced deepening income pressure since 2023 and incomes dropped by nearly 70% in 2023 and made only a modest recovery in 2024.
IFA proposes that €65 million must be pledged towards the sector on the 7th October in order to secure the survival of the sector. The Programme for government commits to investing significantly in the tillage sector.
Grain Prices
To highlight that since the end of the EU intervention pricing, Irish and European producers have been totally at the mercy of world commodity market pricing with little or no market protection. Relatively low grain prices combined with a massive increase in overall cost of production have combined to decimate tillage farmer margins.
To highlight that European production has largely remained static in this century. However, the rise in yield potential of coarse grains such as maize has been much greater through adoption of GM and hybrid breeding technologies in other regions outside of the EU.
Costs of Production
To highlight that, while volatility in individual input costs such as fertiliser have affected the tillage sector in recent decades, the period since the pandemic in 2020 has seen significant inflation in all fixed and variable costs overheads associated with tillage production.
That the outbreak of war in Ukraine caused a further dramatic escalation in key variable cost centres such as fertiliser and fuel. IFA analysis indicates that input costs have risen by 106% on tillage farms in the period between 2017 and 2023.
That, since the second half of 2023, grain prices have dropped substantially, while input cost have remained historically elevated which has left tillage farmers extremely exposed and margins strongly negative on rented land and razor thin on owned land.
EU Direct Payments
That EU direct payments play a crucial role on tillage farms. Specialist and mixed operations, largely based in the midlands, eastern and southern coastlines hold higher entitlement values and typically farm larger areas which results in higher annual direct payments.
To highlight that direct payments on tillage farms typically made up 70-80% family farm income for many years, however, for 2023 and 2024, direct payments have made up an average of 110% of income in these years.
To emphasise the damage that introduction of convergence and CRISS/front-loading under the 2023-2027 CAP programme has had on the competitiveness of the sector. Higher direct payments have been a valuable safety net from periods of unprotected world market prices in the past 20 years; however, this protection blanket has now been totally removed.
Land Access
To highlight that the smaller size and fragmented nature of Irish farm ownership and the need for a higher degree of scale, participation in the leased or rented land market by tillage farmers is high. It is generally accepted that at least 40% of the tillage area is grown on rented or leased land, about twice the average of all Irish farms. Therefore, the cost associated with rented or leased land has significant bearing on the economic health of the wider sector.
To stress that changes in Irelands maximum stocking rates under the nitrates derogation have a very disruptive impact on the price of rented land which has totally eroded tillage farmers ability to compete in the land market and particularly in areas such as south Leinster and east Munster where dairy and tillage enterprises are dominant. Removal of the nitrates derogation would be extremely detrimental to the tillage sector.
Imported Grain
To highlight that it is widely accepted by Ireland cannot produce enough grain to meet its annual requirements. The significant increase in feed demand to 5.5 million tonnes in the past decade coupled with some structural industry changes in the way grain is traded has placed more of a reliance on imported grains and feedstuff ingredients.
To emphasise that, while imported soya-meal is a necessary protein source, the increasing use and promotion of feedstuffs such as palm-kernel-expeller, GM maize and dried distillers grains imported from half-way around the world while Irish grain remains unused is incredibly frustrating for Irish farmers and Irish merchants who are committed to purchasing Irish grain.
IFA propose that an inclusion rate for native grains and pulses, set an appropriate percentage, must now be given serious consideration by all stakeholders to ensure that all native Irish grains are valued and remain at the forefront of the Irish agricultural production.
Future Solutions
To seek government support which is needed to ensure survival of the sector. Since March 2024, IFA called has called for the introduction of €250/ha tillage survival payment to help mitigate the challenges facing the sector. Such a proposal would require a budget of €65 million annually over a 5-year period.
That future European CAP proposals cannot be allowed to strike another blow on the tillage sector. Given Ireland now has one of the lowest areas devoted in the EU-27, Ireland as a member state must give serious consideration to extending coupled income support beyond protein crops to strategically important crops such cereals.
To highlight that that the world we know today faces threats from geopolitical factors, tariffs and economic uncertainty. Now is not the time to let an important indigenous industry such as our tillage sector to shrink into a non-existent state.
To stress that greater recognition of the sustainable and environmentally friendly credentials of Irish native grains must be considered a priority action in addressing the challenges of the tillage sector.
To call on all elected public representatives and government officials to support our tillage sector and ensure it survives this current crisis.
Name of person primarily responsible for lobbying on this activity
Francie Gorman IFA President, Damian McDonald IFA Director General, Kieran McEvoy IFA Grain Chair, John Murphy IFA Grain Vice Chair, Max Potterton IFA Policy Executive
Did any Designated Public Official(DPO) or former Designated Public Official(DPO) carry out lobbying activities on your behalf in relation to this return? You must include yourself, and answer Yes, if you are a current DPO or a DPO at any time in the past. (What is a Designated Public Official?)
No
Did you manage or direct a grassroots campaign?
No
Was this lobbying done on behalf of a client?
No
Lobbying activity
The following activities occurred for this specific Subject Matter Area.
Informal communication (6-10)
Designated public officials lobbied
The following DPOs were lobbied during this return period on this specific Subject Matter Area. These DPOs were involved in at least one of the Lobbying Activities listed above, but not necessarily all of them.
As returns are specific to a Subject Matter Area the above Lobbying Activities may be associated with multiple returns.
Aindrias Moynihan
TD (Dáil Éireann, the Oireachtas)
Danny Healy-Rae
TD (Dáil Éireann, the Oireachtas)
Eileen Lynch
Senator (Seanad)
Joanne Collins
Senator (Seanad)
Joe Cooney
TD (Dáil Éireann, the Oireachtas)
Martin Kenny
TD (Dáil Éireann, the Oireachtas)
Michael Fitzmaurice
TD (Dáil Éireann, the Oireachtas)
Natasha Newsome Drennan
TD (Dáil Éireann, the Oireachtas)
Paraic Brady
Senator (Seanad)
Paul Daly
Senator (Seanad)
Paul Lawless
TD (Dáil Éireann, the Oireachtas)
Peter 'Chap' Cleere
TD (Dáil Éireann, the Oireachtas)
Victor Boyhan
Senator (Seanad)
William Aird
TD (Dáil Éireann, the Oireachtas)
Martin Heydon
Minister (Department of Agriculture, Food and the Marine)
Sinead McPhillips
Assistant Secretary (Department of Agriculture, Food and the Marine)
Brian Purcell
Special Adviser (Department of Agriculture and the Marine)