The unrelenting wet weather is creating financial challenges for Irish farmers.
As the wet weather persists Bank of Ireland is urging farmers with concerns to engage as soon as possible with their accountant or financial adviser
The bank is urging urges farmers to explore the range of flexible financing options available to help deal with the impact of sodden on-farm conditions.
“The rain will stop falling eventually, and with the right financial plans in place we can ensure that agri businesses nationwide can look forward to brighter days ahead”
According to Bank of Ireland Agri Development manager Mark Glennon, with March 2024 recorded as one of the wettest on record, following on from a very wet winter.
Finding a break in the clouds
In the midst of the wet conditions, farmers have several concerns including:
- Increased costs driven by a very long winter and inclement spring which is also impacting animal performance and crop growing conditions
- Cost overhangs from 2023 due to weak farm gate prices and ever-rising input prices along with inflated 2023 tax bills.
- Farmers used cash balances that were available and invested in infrastructure and farm machinery last year – now dealing with decreased cashflow as a result
- Farmers forced to provide supplementary feeds to livestock, whilst the sowing of crops remains on hold as the country waits for a sustained dry spell.
Flexible options available to farmers include overdraft extensions, flexible term loans, and the ability to retrospectively finance previous investments made from cashflow.
Glennon said such measures are designed to help alleviate the pressures currently facing farmers.
Targeted loans, for example, can provide increased financial breathing space and help spread the cost of additional inputs such as straw or fodder over an agreed and flexible term.
“We understand that this is a particularly challenging time for farmers as they deal with the unrelenting wet weather, and that a level of flexibility is required when engaging with your financial provider,” Glennon said.
“I would encourage any farmer seeking assistance to talk to us, so that we can ensure your finances are properly structured and devise a plan that will help overcome the current challenges. The rain will stop falling eventually, and with the right financial plans in place we can ensure that agri businesses nationwide can look forward to brighter days ahead.”
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Main image at top: Photo by Corey Hearne on Unsplash
