17 January 2025
Contract rearing – a tool in the armoury for nitrates compliance?
Changed nitrates regulations, labour availability and the cost of acquiring additional leased land are just some of the reasons why dairy farmer interest in entering a contract rearing agreement has increased in recent times.
As part of a ‘Contract Rearing’ webinar, organised by the Teagasc Farm Management team, which shared the key elements farmers – both dairy farmers and potential rearers – need to be aware of, Collaborative Farming Specialist at Teagasc, Ruth Fennell discussed the contract rearing agreement at length and shared key details of the cost structure involved.
Part of her presentation focused on the management options dairy farmers can take to reduce their stocking rate, an important element considering the reduction in the permissible nitrates derogation stocking rate (250kg organic N back to 220kg organic N) for some farms, the introduction of three nitrates excretion rates for dairy cows through banding, and the changes to nutrient densities of slurry when exporting.
Management options to reduce stocking rate
- Reducing cow numbers;
- Taking on additional land;
- Exporting of slurry;
- Banding – if you are very close to moving down a band, it may be possible to do so through changing your management practices;
- Contract rearing;
- Remove surplus stock.
On the strategies outlined above, Fennell explained: “Everybody needs to look at their own individual situation and see which of these options might suit them the best. They may look at a combination of some of these options, but it is important that they look at the financial implications of these options for their own individual farm.”
Exporting slurry versus contract rearing – the impact on nitrates
The Collaborative Farming Specialist also worked through two examples from one farm, where the export of slurry or entering a contract rearing agreement were considered as strategies to bring down the farm’s overall organic nitrogen production. The example centred on a 44ha farm, carrying 100 cows and having to adhere to a maximum nitrates derogation limit of 220kg of organic N/ha.
Complications were cited with exporting slurry, including the significant loss of nutrients, with Fennell explaining: “Exporting that valuable nutrient off the farm in order to maintain our stocking rates can be a significantly costly exercise.”
She added: “It is also getting more difficult to source farms that are in a position to take that slurry.” Factors such as importing farms having low available phosphorus allowances and the changes in the nitrogen density of exported slurry from 5kg of N/m3 to 2.4kg of N/m3 were identified as the primary challenges.
In example 1, were the export of slurry is the preferred method of lowering the farm’s overall N stocking rate, the dairy farm would have to export nearly all of the slurry produced by his/her cows over a 16-week housing period in order to stay nitrates compliant.
Example 1: Slurry export
- Dairy farmer: 44ha farm with 100 cows (middle band, 92kg of organic N), 20 R1s, 20 R2s and all other calves retained for three weeks. Total organic N for the year estimated at 10,800kg N or 245kg organic N/ha.
- Needs to reduce organic N by 25kg/ha or 1,100kg to comply with 220kg maximum organic N allowance under derogation.
- Cows produce 0.33m3 of slurry per week over the winter. Over a 16 week winter, this equates to 528m3 for 100 cows.
- At 2.4kg organic N/m3 of slurry, this is equivalent to 1,267kg of N. Virtually all of the slurry from the cows needs to be exported to meet stocking rate limit.
Alternatively, as outlined in example 2 below, if the farm was to engage in contract rearing, moving R1 and R2 animals off farm to a contract rearer, it has the capability to reduce the farm’s overall organic N production significantly.
Example 2: Impact of contract rearing on farm stocking rate
- Same farm, 44ha, 100 middle band cows, 20 R1s and 20 R2s;
- Organic N: 20 (R1s) X 21kg organic N and 20 (R2s) X 42kg of organic N (9 months of the year) = 1,240kg of organic N;
- If contract reared, this would reduce the farm stocking rate to 217kg N/ha;
- Additional grass available to the dairy herd should allow for reduced meal fed to cows and increased performance – both physical and financial.
Also discussed in the webinar, available to view below, is an example of contract rearing costs, the key requirements of a contract rearing arrangement, bovine TB and contract rearing, and farmers’ experiences of contract rearing.
Watch a recording of the Contract Rearing Webinar below:
For more detailed information on contract rearing and contract rearing agreements, visit here.