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Abstract
While comprehensive farm level models for the dairy, beef and cereal sectors have previously been
developed, to date, relatively little research has been conducted on the economics of the sheep sector at
farm level. Nationally representative farm level data from Teagasc’s National Farm Survey (NFS) is used
to develop a model examining the economic factors of concentrate usage on Irish sheep farms informed by
the current body of literature on pastoral based production systems research. Results from a 2 step random
effects panel regression of a demand function for concentrate use with log linear functional form support
the established production literature. The demand for concentrates on Irish sheep farms was found to be
elastic and thus sensitive to price changes. Farm labour input, fertiliser application, subscription to an
extension and research provider and date of lambing were found to be significantly associated with
concentrate demand on sheep enterprises. Results from a second model specification indicate the presence
of spatially heterogeneous effects of lambing on concentrate demand across regions.