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Poor yields, not prices, squeezed Irish tillage margins in 2026, Teagasc says

Teagasc's first look at harvest 2026 finds drought-hit yields did most damage to tillage margins, even though Irish grain prices rose about 20 euro a tonne.

Poor yields, not prices, squeezed Irish tillage margins in 2026, Teagasc says
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Poor yields were the biggest reason for the very tight margins many Irish tillage farmers earned from harvest 2026, according to an initial analysis by Teagasc, the state farm advisory and research body.

That is despite Irish grain prices rising by about 20 euro a tonne on the year. The other pressure over the past 12 months has been a sharp rise in input costs for fertiliser, fuel and labour.

"Yields were very variable across all crops. And the impact of the drought made all the difference," said Teagasc tillage specialist Shay Phelan. Some spring barley yielded moderately well, others poorly, and winter barley was badly hit by the drought across the board.

Winter oilseed rape has been the success story of the last two years, driven by strong prices rather than yields, which were moderate. Phelan does not expect much more rape to be planted in 2026/27, because rotation limits leave little room in some areas.

Winter cereal planting is moving quickly, especially on larger farms, but Phelan warned that early sowing brings risks and costs. The threat of Barley Yellow Dwarf Virus (BYDV) is high; tolerant winter barley varieties and insecticides against aphids help, but "even combined, neither approach can offer full insurance cover". Grass weeds are also harder to control and lodging more likely in early-sown crops.

"Harvest 2026 has shown that final yield is a key driver of crop margins," he said.

The report is by Richard Halleron for Agriland.

Photo: Colin Grice / Wikimedia Commons (CC BY-SA 2.0)

Source: Agriland

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