Podcast Ep 199: The prolonged wet weather of recent weeks is having financial implications for farmers, warns Bank of Ireland’s head of Agriculture Eoin Lowry.
If the sun is shining the chances are the sustained wet weather of recent weeks may be already out of your mind. That is, of course, unless you’re a farmer in Ireland.
The prolonged wet weather has become a nightmare for farmers with animals housed indoors longer than usual in some parts of the country, the planting of Spring crops has been delayed and many farmers are seeing bills and costs mount, making cash reserves tight.
“As a bank, it’s very important that we are flexible around financial arrangements, providing stocking loans, and making sure that farmers are supported through this difficult and tough time”
This is on top of lower profitability in 2023 due to weaker farm gate prices, high input costs and inflated tax bills.
Coupled with this, in some instances healthy cash balances from 2022 were invested in farm machinery and infrastructure in 2023,making early 2024 the perfect storm.
Bank of Ireland’s head of Agri Sector Eoin Lowry said that the challenges have been manifold with many farmers’ silage and fodder stocks fully depleted, creating a nightmare until animals can be turned out to grass again.
The sun will shine again
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“It’s been a tough and challenging few months for farmers, particularly since last September and October and it seems the winter has been never-ending.
“The big issues for farmers at the moment are that they can’t get their animals out of the winter housing to graze the grass because the land is sodden. If you’re looking at tillage farmers, it was difficult to get their winter crops into the ground. These crops have been under pressure the past few months and are not in the best quality. And now we’re in the spring crop sowing season and that’s nearly over. And these crops can’t get into the ground with the cold. So there’s a lot of work that has to take place on farms and every day that passes is a potentially day less of growing season.
“So costs are mounting for farmers. The negative impact of the weather is going to affect performance in the longer term because the yield output is not there.
“So there’s a lot of pressure on farmers right now.”
Lowry said that it is important for farmers to maintain perspective and not to suffer in silence.
He urges farmers to talk to their bank, to their accountants and seek assistance. In working with their bank and their accountants it will help to ensure that farm finances are properly structured to overcome the current challenges and look forward to brighter days ahead.
“The wet weather has been relentless but the sun will come out at some stage. Farmers have dealt with crises before, be it Brexit or Covid or the Ukraine War or price of inflation in input costs. There is always a better day and there will be a better day again tomorrow.
“We understand that. And I suppose as a bank, it’s very important that we are flexible around financial arrangements, providing stocking loans, and making sure that farmers are supported through this difficult and tough time.
“Our key message, and I can’t emphasize this enough, is that many farmers that are seeking assistance come talk to us so that we can ensure that they have the structures and the adequate finances in place and also devise a plan to overcome the current challenges,” Lowry urged.
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