The body representing farm contractors in Ireland has claimed that there are incidents of Teagasc advisors instructing their clients to “pay the contractor last”.
The Association of Farm and Forestry Contractors in Ireland (FCI) held its 2022 Conference yesterday (Wednesday, December 7), where the issue was brought up while Teagasc research officer, Emma Dillon was taking questions from the floor.
One contractor in attendance said: “It’s been happening for quite a few years. Teagasc has been telling farmers ‘pay your bank, pay your feed stuff, pay this, pay that, but leave the contractor to last’.
“That advice needs to change. This needs to stop. We’re in business to keep in business. And we need to be paid quickly.”
In response to this, Dillon (who is not involved in the advisory side of Teagasc’s activities) said: “Clearly that’s not something that would be acceptable at all, and it shouldn’t be happening, if it is happening.”
The contractor who raised the issue commented that the practice is “widespread”, while the moderator for the FCI Conference, the group’s former national chairperson Richie White, said: “It has happened, to be fair. We have many reports of this in the last few years.
“We don’t like this. It impacts us drastically, when we hear that mindset going on… we are people providing this service to our customers, who are farmers… it’s really not on.”
Dillon was asked to raise the issue with her Teagasc colleagues.
It is understood that there is a perception among contractors that farmers are told to prioritise paying other service and product suppliers before paying their contractors, as businesses such as banks, co-ops and merchants are seen as being in a stronger position than contractors to pursue a payment.
It is also understood that the FCI held a meeting with then-director of Teagasc Gerry Boyle a number of years ago to address the issue, but was unhappy with the outcome of that meeting.
Role of contractors
Meanwhile, the association said that the role of farm contactors in achieving the government’s environmental targets “has never been more vital”.
“Farm contractors are the most important Irish farming partnership group, providing machinery services to 137,000 Irish farms in a business that is valued annually at over €800 million,” the FCI said.
According to the group, contractors need to understand their responsibilities in supporting farming to achieve these environmental targets.