Farmers with cashflow concerns after the recent dry weather are being urged to engage as soon as possible with their bank, financial adviser or accountant to explore their options.

Bank of Ireland has said that its agri and business advisers are proactively engaging with farming businesses and making tailored financial support measures available to help them manage both immediate pressures and longer-term resilience.

The bank said it anticipates an increase in support queries in the short-term, as farming businesses evaluate the financial and operational effects of prolonged dry weather.

It outlined that it has a range of measures designed to help alleviate the pressures currently facing farmers.

Bank of Ireland added that targeted loans can provide increased financial breathing space and help spread the cost of additional inputs over an agreed and flexible term.

'Challenging year'

Head of agriculture at Bank of Ireland, Eoin Lowry said that it has been "a challenging year for farmers".

He added that "a long cold and wet winter has now been followed by an exceptionally long dry spell" with farmers reporting reduced yields and increased costs from additional feeding over recent weeks.

Lowry said: “While we are not yet seeing a material increase in demand for support, we expect pressures on some farming businesses to build over the coming weeks and months.

“I would encourage any farmer that is concerned to talk to us, so that we can ensure the farm finances are properly structured and devise a plan that will help overcome the current challenges.”

Concerns

With June, July and August recorded as one of the driest summers on record, farmers have several concerns including: 

Farmers forced to provide supplementary feeds to livestock, whilst grass growth is slowing;
Costs associated with animal welfare issues as a result of high temperatures;
Increased costs to combat drought and to provide a steady water supply to livestock;
Lower harvest yields and poorer quality across many tillage and vegetable farms;
Farmers who invested in infrastructure and farm machinery last year now dealing with decreased cashflow as a result.

According to Lowry, Bank of Ireland has increased the size of its internal agri-response team and will keep farmers' situation under “constant review”.