A number of factors are building up to create “a perfect financial storm” that many farm families will struggle to manage, a leading farm accounts firm has warned.
The accountancy and financial advisory firm IFAC is pressing on Minister for Agriculture, Food and the Marine, Michael Creed, to continuously liaise with lenders.
Earlier this week, Minister Creed met with the country’s pillar banks to discuss the impact of the exceptional dry conditions on the farming sector.
The minister impressed upon the banks the need for their continued support for the sector through this difficult period.
In a statement this week, IFAC CEO John Donoghue said: “In recent weeks our teams around the country are meeting more and more farmers who are anxious about being able to meet their financial commitments this year.”
He stressed that appropriate credit facilities must be available to farmers over the coming months as the farming sector faces the prospect of a very difficult and costly winter.
Farmers are desperately trying to figure out how to source and finance new fodder supplies for the winter.
“With silage currently priced at €45 per bale and little prospect of grass growth as the drought continues, feeding livestock is very challenging this year after last year’s prolonged winter,” he said.
Maximum Flexibility
Donoghue also outlined that many dairy farmers will have to deal with a larger than average tax bill this year on the back of strong milk prices in 2017.
He acknowledged that agricultural merchants have been generously supplying credit to farmers to help them through recent months but he noted that “it can’t go on forever”.
“Our professionals are currently flat-out supporting farmers, offering practical financial advice and putting fodder and cash flow budgets in place.
Donoghue concluded by calling on the financial institutions to display maximum flexibility and understanding in dealing with farm families who are under pressure to manage costs in what he says is turning out to be an exceptionally stressful year.