It is necessary to find a balance between careful decision-making and taking calculated risks when considering farm expansion, according to the chief executive of FBD Insurance, Fiona Muldoon.

Speaking at the awards ceremony for the Teagasc / FBD Insurance Student of the Year competition yesterday in Dublin, Muldoon said that the agri sector is currently an exciting area to be involved in.

Also Read: Cork farmer wins Teagasc / FBD Insurance Student of the Year

Continuing, she said: “Farming and agriculture are to the forefront in technological advancement in Ireland and change is occurring at an almost frantic pace within the sector.

“Opportunities are presenting themselves that have not been available for a generation and there are now even opportunities for non-traditional entries into farming and agri-business.

“This is all occurring against a backdrop of highly fluctuating commodity prices. At FBD, we can see these changes firsthand.”

Considering expansion

While growing a farm or business is a very exciting prospect, growing also presents as many challenges as it does rewards, Muldoon explained.

Addressing the students and their families at the event, she said: “I thought it might be useful to share a lesson of our own rampant growth experience in FBD. It might provide you with some takeaways as you embark on your own respective careers.

In the late 2000s, FBD embarked on a rapid trajectory and, while the company grew rapidly, it also took on risks that it would previously have shunned or did not thoroughly understand.

“This rapid growth cost the company dearly, resulting in an almost €100 million loss in 2014. It has been a difficult road for everyone at FBD to return the company, once again, to profitability and a strong financial footing.

“We achieved this by going back to basics and focusing on what we were really good at; serving our traditional farming, small business and consumer customer base – and endeavouring to do it better than anybody else,” she added.

Muldoon encouraged the students present to carefully consider decisions regarding expansion before taking the leap of faith, but she also encouraged them to be brave.

“I would urge all candidates here today to undertake careful and considered decision-making, and to pursue growth throughout your career carefully; not doing so is very risky over the longer term.

However, careful and considered decision-making is not an excuse for not being brave and taking calculated risks at certain points throughout your career.

“Fortune will always favour the brave; I’m just saying think it through,” she concluded.