Ifac Launches Nitrates Banding Calculator

New Nitrates Banding

The new Nitrates Action Plan will change the organic nitrate levels deemed to be produced per cow, with a new banding limit brought into effect for all herds. Each herd will be assigned to one of three bands. The banding category for each herd will depend on either the herd’s average milk yield on a rolling three-year average basis or for the previous year.

The new plan increases the deemed organic nitrates produced per cow based on milk yield, and will move about 17% of herds from 89kg of organic nitrogen excretion per cow to the next band at 106kg per cow, forcing some dairy farmers to involuntary reduce their stocking rate. 

Table 1: New Nitrates Banding Figures

Review of Maximum Stocking Rate:

A mid-term review of the Nitrates Action Plan could also see the possibility of reducing the maximum of 250kg of organic N/ha to 220kg depending on water quality during the transition.

Table 2: Impact that reduced stocking rate from 250kg N/ha to 220kg N/ha will have on herd numbers

Our ifac Nitrates Banding Calculator

We have developed a nitrates banding calculator to help dairy farmers to determine what nitrogen excretion band their herd may be in. This calculator is a working document, that enables farmers to input data relevant to their herds.

The Nitrates band calculator is provided for general information purposes only. The calculator is provided by ifac, and while we endeavour to keep the information up-to-date and correct, we make no representations or warranties of any kind, express or implied, about the completeness or accuracy, of the information contained therein, or the calculations generated from its use. Any reliance you place on such information is therefore strictly at your own risk.

Case Study

To facilitate a better understanding of the impact that some of these changes may have on family farms, let’s examine the following scenario.

This farm falls under the Band 3 Nitrates Banding as the average yield per cow is above 6,500kgs (6,300 litres). Consequently, the amount of organic nitrogen permitted from 2023 onwards will be 106kg/cow. Total income in scenario (B) would result in a 33% drop in income, allowing for a pro-rata reduction in feed and fertiliser costs based on 94 cows. In Scenario (c), if derogation were to be reduced to 220 kg organic N/Ha, the overall income would drop by 53%, based on the farm now carrying 83 cows. Feed and fertiliser have again been reduced on a pro-rata basis. 

Options to Maintain Cow Numbers

1.     Additional Lands:

The ability to analyse all options for farmers who wish to maintain cow numbers cannot be presented within the scope of this paper. However, we have identified and analysed two options based on the same base case scenario as per the previous case study. Let’s consider the option of a farmer who wishes to lease additional lands. The assumption here is that the farmer does not need the additional grass for forage, and the leasing of the lands is strictly required to conform with the new Nitrates Directive Plan. If this were the case, then assuming additional land rental for 8 hectares at a cost of €750/ha, then the impact of taking these additional leased lands would be a 5% drop in income from the base case. 

2.     Reducing Milk Supply

Again, if a farmer wished to maximise cow numbers, then another option would be to examine the possibility of reducing milk supply. This can be done by reducing the level of concentrates fed to cows in August and September so as not to compromise the cow nutritionally in the first three months of lactation. Proper nutrition is key during this period to ensure strong conception rates and maintaining overall BCS of the cow. 

By reducing feed by 150kg/head in August and September, this should reduce cow yields by c.300l/cow and then dry off cows a week or two earlier. This latter option may need to be fluid depending on milk yield performance. This option will reduce overall farm income by 23% from the base case due to the drop in milk yield and a slight drop in cow numbers.

Conclusion

The above case study demonstrates the financial impact that the new Nitrates Directive Plan will have on the higher-yielding herds. While it is the higher-yielding herds that are facing the immediate effects of this plan, any further changes to the overall nitrogen limits currently permissible will have far-reaching income effects for many more farmers. Everyone’s circumstances are unique to their own farm, and there is an onus for each farmer to review their own individual circumstances and put an appropriate plan in place that achieves the financial and environmental objectives of the business. It is likely that this new nitrates directive will act as a new quota for dairy farmers going forward, with a forced reduction in cow numbers inevitable on many farms.