The Irish Farmers’ Association (IFA) has called for “swift, strategic government action” in the face of an array of spiralling costs.
IFA national farm business chair, Rose Mary McDonagh, said farmers across all sectors are having their margins eroded as a result of these spiralling costs.
Output prices rose 19.2% in February when compared to 2021 levels, but aggregate input prices rose by over 28%, with increases in certain fertilisers up 180%, fuel up 38.5%, and feed and electricity up 20% and 22%, respectively.
McDonagh said farmers cannot be left in limbo and expected to carry on, regardless.
“It’s simply just not sustainable at current levels. Many operations will simply go out of business if nothing changes soon,” she said.
“We need more forward-thinking and swift strategic action from government and across the value chain. Unlike others, farmers haven’t the luxury of being able to pass on the added cost of production to others, and we cannot be left to carry all the risk and cost of the energy crisis,” she said.
She said there is no point investing in crops now if there’s no fertiliser to support growth along the way, or even fuel for the agri-contractors to harvest it.
“Detailed inventories on fertiliser/fuel/feed stocks must be completed as a matter of urgency and priority given to farmers and contractors to preserve food and feed security,” she said.
“We’ve been told we’re getting over €15m from the EU Crisis Reserve Fund and that government can top-up to close to €50m, but we’ve no clarity if this will happen, or what kind of supports are potentially going to be made available,” she said.
Government supports relating to fodder and food security; pig and poultry farmers; and tillage farmers, were welcome first steps, she said, but supports are needed to grow additional grass silage/fodder for the coming winter.
“It’s now that farmers need to be saving up the ground for first cut silage,” she said.
“Farmers had to pay upfront to secure necessary inputs this spring, where before they may have purchased on credit and paid during peak milk; when stock were sold; or the harvest complete. Financial institutions need to take a flexible and understanding approach and support those most impacted, ensuring a swift turnaround in the provision of low-cost working capital,” she said.
She said traders and processors must also offer electronic funds transfer as an option to speed up the transfer of funds into accounts, rather than rely on inefficient cheque payment processes with associated delays in postage, lodgement, and clearance.
The phased exit of Ulster Bank from the market is also creating another layer of complexity for many,” she said.
“Existing financial providers, in addition to Ulster Bank, need to ensure that adequate resources and supports are devoted to ensuring the smooth transition of its customers and any associated banking facilities/services.”