Podcast Ep 221: Financial wellbeing, navigating near-term challenges as well as unlocking economic opportunities for farmers will be the focus for Eoin Lowry and his team at the Ploughing Championships 2024.
As we speak Bank of Ireland’s head of Agriculture Sector Eoin Lowry is head-down making preparations for the Ploughing Championships where the Bank will have a full-on schedule of talks for farmers.
The significance of the event – dubbed Europe’s largest outdoor event – with more than 200,000 visitors and 1,700 exhibitors – he says, cannot be underestimated.
“It has been a challenging period for farmers and that’s simply down to the weather. Combined with less output and higher costs, it’s been really tough in terms of financial management”
“It’s a bit of a book-end for the calendar year for farmers. Everyone celebrates the year that has been but this year has also been a tough year.”
The history of ploughing competitions in Ireland extends back to the 19th century but Lowry says the Ploughing Championships as we know it owes its origins to the rivalry between two farmers over who was the best ploughman. “Lo and behold they decided to have a plough-off in a field in 1931 and it developed over the years. It’s a fantastic showcase for Irish agriculture and it takes over about 700 or 800 acres.”
The Bank of Ireland presence at the Ploughing has always been strong. “It’s an opportunity for us to engage with our customers given the significant numbers attending and an opportunity for us to hear from them about what their challenges are and where they feel that their businesses and farms are going over the coming years.”
Banking generations of farmers
Lowry points out that the Bank is one of the oldest lenders to the Irish agri sector and counts more than 82,000 farms among its customers, including €4bn worth of lending of which €1bn is at farm level.
“This year we are very much interested in what the future of farming looks like. We will be talking about succession, renewable energy fields such as anaerobic digestion, how to defend against fraud. So the talks will be very much about the issues of the day.”
He said that this year has been a challenging year for Irish farmers. “We will be looking at areas such as how they should be managing their cash flow into the winter months.”
In recent weeks Lowry published a ‘5 steps to improving cashflow on your farm’ guide that also comes with a handy cash flow planning tool.
“It has been a challenging period for farmers and that’s simply down to the weather. The winter was wet and cold and spring was a long time coming. It has been very challenging in terms of growing crops. Combined with less output and higher costs, it’s been really tough in terms of financial management.”
He predicted the mood of farmers may be down on previous years but it’s par for the course for farmers. “If anything, farmers have been here before. They have had tough years. They are very resilient and they always focus on the future.
“So what we’re trying to bring to the table this year is yes farming does come with these challenges but we as a Bank take a long-term view. We don’t take one single year in isolation if we’re looking at financing a project. That’s the message we want to get out to farmers.”
While farmers are under pressure to comply with a variety of environmental regulations, Lowry told The ThinkBusiness Podcast that it’s ultimately about helping ensure farms can be sustainable in the long-term.
“We have banked many family farms for generations and we want to continue to do that. But around sustainability, the piece that is often missed is the opportunities that’s going to create. We know that there are going tob e significant targets on farms to reduce their carbon footprint, but there’s also the opportunity help decarbonise other sectors. Opportunities in solar, for example. We’re very interested in exploring opportunities with the farming sector. We wrote a report recently around biomethane for the agriculture sector. So there are opportunities for farmers as part of that environmental transition.
“Another thing that came out of that report is economic opportunities for rural communities as the transition ushers in new and more innovative techniques and provides another ability for farmers to derive an income.”
As well as the cash flow planning tool, Lowry referenced the Bank’s Enviroflex product that has been rolled out with co-ops around Ireland, most recently with North Cork Creameries.
“It is essentially about providing discounted finance to farmers who are taking sustainable action on their farms.”
Ultimately, Bank of Ireland’s presence at the 2024 Ploughing Championships is to equip Irish farmers for the near-term as well as long-term challenges ahead.
“It’s all about informing and educating farmers to ensure our customers are aware of the resources and supports that we can provide. These are the areas we want to focus on at the Ploughing this year.”
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