Abolishment Of Milk Quota In Agriculture
Could the abolishment of the milk quota mean the end of small Irish dairy farmers? Suggest reasons why.
It is indisputable that the rapid rate of change since the end of the milk quota has put intense pressure on many small farmers. These small farmers are the backbone of rural communities across the country and the only thing that is keeping the Irish country side looking like it does. Now these small farmers are about to go to the wall. This question is aimed at encouraging students to expand their knowledge and understanding of the effects of the abolishment of the milk quota on small rural farmers, while also examining what the future of dairy farming will be. Students should be able to identify a number of reasons such as:
• The milk quota …show more content…
Some farmers will need to find an alternative way of providing income through off-farm activities. While other small farmers may decide to exit dairy farming completely and peruse a career with a more stable income. With the end of the milk quota expected to have an indirect impact on the rest of the economy, creating a predicted 10,000 jobs, the unemployment rate in rural Ireland is going to decrease significantly. Many small dairy farmers will now have the opportunity to obtain work as labourers, machinery contractors etc. Dairy farming is a strenuous job that is extremely time consuming, given the option to leave it for a stable Monday to Friday job instead, is a very attractive offer indeed. With the uncertainty in the current milk markets and the high standard of living in Ireland, many small farmers will take this opportunity and leave dairy farming for good realising that only large scale farmers who create economies of scales will generate a sustainable income from milk production. It is obvious that the phrase ‘Get big or get out’ is the new motto of the Irish dairy industry.
• Trevor Donnellan and Thia Hennessy of Teagasc are predicting that the average dairy herd size will increase from 65 to 85 cows over the coming years. This in turn will result in the definition of a small dairy farmer changing also. However, if farmers wish to increase their herd size, they must also increase their farm size. Dairy farmers will need to acquire additional land, for grazing and fodder purposes. This can only be achieved through a more liberal land market, be it for renting or buying. This being said, if demand for farm land increases then so too will the price of farm land.
It is indisputable that the rapid rate of change since the end of the milk quota has put intense pressure on many small farmers. These small farmers are the backbone of rural communities across the country and the only thing that is keeping the Irish country side looking like it does. Now these small farmers are about to go to the wall. This question is aimed at encouraging students to expand their knowledge and understanding of the effects of the abolishment of the milk quota on small rural farmers, while also examining what the future of dairy farming will be. Students should be able to identify a number of reasons such as:
• The milk quota …show more content…
Some farmers will need to find an alternative way of providing income through off-farm activities. While other small farmers may decide to exit dairy farming completely and peruse a career with a more stable income. With the end of the milk quota expected to have an indirect impact on the rest of the economy, creating a predicted 10,000 jobs, the unemployment rate in rural Ireland is going to decrease significantly. Many small dairy farmers will now have the opportunity to obtain work as labourers, machinery contractors etc. Dairy farming is a strenuous job that is extremely time consuming, given the option to leave it for a stable Monday to Friday job instead, is a very attractive offer indeed. With the uncertainty in the current milk markets and the high standard of living in Ireland, many small farmers will take this opportunity and leave dairy farming for good realising that only large scale farmers who create economies of scales will generate a sustainable income from milk production. It is obvious that the phrase ‘Get big or get out’ is the new motto of the Irish dairy industry.
• Trevor Donnellan and Thia Hennessy of Teagasc are predicting that the average dairy herd size will increase from 65 to 85 cows over the coming years. This in turn will result in the definition of a small dairy farmer changing also. However, if farmers wish to increase their herd size, they must also increase their farm size. Dairy farmers will need to acquire additional land, for grazing and fodder purposes. This can only be achieved through a more liberal land market, be it for renting or buying. This being said, if demand for farm land increases then so too will the price of farm land.