15 September 2022

Tillage update – Crop Margins 2023

After two excellent harvests in 2021 and 2022 where yields were above average and grain price increased to unprecedented levels, Ciaran Collins, Teagasc Tillage Specialist, looks forward to 2023.

Costs did increase in 2022 particularly fertiliser but many tillage farmers avoided the worst of these as a lot of business was done in the early part of the spring before the spike in prices came in March/April. 

But what of 2023? Everybody is starting at the same point with expensive fertiliser while seed, chemicals and machinery costs have all increased substantially over 2022.

The Teagasc costs and returns book is published every January and outlines the expected costs and returns for tillage crops based on current input costs and the grain price on offer.

The provisional costs for 2023 indicate that fertiliser will be at its highest point in the 45 year history of the publication with CAN+S at €860 and 10-10-20 included at €975 in the costings. Cereal seed is up €130/t, machinery +5% and chemicals +10% on 2022.

The provisional costs and returns for 2023 show that the cost of growing a crop of winter wheat and spring barley in 2023 has increased by 65% and 56% respectively when compared to 2021. Based on current figures a tillage farmer with winter crops can expect a 62% increase in input costs from 2021.

The equivalent figure for a tillage farmer with spring crops is a 48% increase in costs for 2023 when compared with 2021.

The crop margins are based on current available prices and the published version in January may look a little different. Crop margins are based on the 5 year average yield for each crop. 

¹2018 – 2021 CSO data, 2022 Teagasc estimates
²10 year average. 5 year average disproportionally affected by 2018 drought. 

 Find out more information and advice from the Teagasc Crops team here. Find your local Teagasc office here