Fertiliser price hikes will cost farmers €36m
Tillage farmers most exposed as CAN and urea prices rise by €40/t to €70/t
A big hike in fertiliser prices this spring could cost farmers over €36m.
Price increases on all the main products have been announced by fertiliser suppliers, with the cost of CAN and urea up between €40/t to €70/t compared to last year.
The price increases will add between €3,500 and €4,000 to overall costs on a 100-cow dairy unit.
For hard-pressed tillage farmers the price hike could cost up to €4/t or close to €10m across the total harvest.
The total cost to the farm sector as a whole could top €36m, the IFA has claimed.
John Coughlan of the IFA Inputs Project Team said rising fertiliser prices will have a negative impact on farm incomes across the board as fertiliser is the second biggest expenditure for the majority of enterprises - excluding pigs and poultry.
"Cereal farms have the biggest exposure with fertiliser now accounting for 35-40pc of the variable production costs, while it accounts for approximately 17pc on dairy farms," said Mr Coughlan. "Based on the five-year average yield, rising fertiliser costs will push up the cost of grain production on index 1 soils by an estimated €3.50/t to €4/t," said Mr Coughlan.
He called on the EU Commission to take immediate action and abolish the imposition of anti-dumping duties on ammonium nitrate and customs tariffs on non-EU fertiliser imports.