The current heatwave sweeping the country is costing an average dairy farmer €250 per day or €1,750 per week, IFAC has warned.
Between the anticipated extra costs for feed because of poor grass growth and additional in-parlour feed costs to maintain milk production, farmers are feeling the financial pinch, the accountancy and financial advisory firm stated earlier today (Wednesday, July 4).
IFAC teams around the country are working hard with farm families nationwide to ensure that they have fodder budgets in place, according to the firm.
They are also working to help families anticipate the pressure that the current hot weather could put on their cash flow.
- Get a fodder budget in place to cover additional costs for the winter – don’t be left short;
- Manage your cash flow and make sure you have the cash resources to meet your financial commitments this year;
- Talk to your bank. If you’re worried about how you’ll service your debt over the winter, talk to it early. The last minute never works;
- Talk to your agri-advisor or accountant to make sure that your financial planning is accurate.
Speaking today, IFAC CEO John Donoghue said: “This current spell of hot weather will have a knock-on effect on the levels of fodder that a farmer can store for the winter – so on-farm planning needs to happen now to ensure that farmers can have access to and can afford to buy in additional feed stock.
In what has already been an expensive year this heatwave is adding significant additional on farm costs.
“We estimate that the heatwave is costing about €1,750 a week for the average dairy farmer in additional costs.”
Continuing, Donoghue said: “Farmers shouldn’t ignore the problem and should plan for financial pressures coming down the tracks.
“Our teams around the country are working with farmers to put cash-flow budgets in place so that farmers are in a better position to meet all their financial commitments for the year. It’s the sensible thing to do.
“Banks hate surprises. We’re advising farmers to work with the banks now to let them know how they’re planning to manage the additional costs brought on by this heatwave and how they’re going to pay their bills over the winter.
Always be honest and upfront with banks. If you have a good, thought-out financial plan that conversation tends to be easier.
“Take the time and talk to your agri-advisor and your accountant,” IFAC’s CEO urged.