Falling grain prices worries IFA

Updated: 22:16, Thursday, 13 August 2009

The IFA has warned that the future of grain production for many farmers is in doubt because of a drop in the price for cereal.

1 of 1Grain - Big drop in prices
Grain - Big drop in prices

The Irish Farmers' Association has warned that the future of grain production for many farmers is in doubt because of the big drop in the price they are being paid for cereal.

There has already been a substantial drop in the acreage of land under tillage this year.

Grain prices reached a high in 2007, but over the past two years the price growers are paid for corn has fallen by 50%.

As the main harvesting of crops gets under way, the IFA has said many farmers may have to stop growing grain because they are working at below the cost of production.

IFA Grain Committee chairman Colum McDonnell said that some 100,000 acres of tillage less has been sown because some growers have opted out.

Mr McDonnell said there is no way that Irish growers can continue to pay top dollar prices for their inputs and take the lows of the market for the grain.

Professor Jimmy Burke of Teagasc agreed that current international market conditions for grain are dreadful but he said Irish growers are well placed to exploit any upturn in the future.

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