Tillage farmers making decisions on the crops they will grow over the next year should base their costings and returns around the current market prices.
This is according to Teagasc’s Paddy Browne who said that market prices are likely to remain low in the coming year.
Speaking at today’s National Tillage Forum in Co. Kildare, the Head of Teagasc Oakpark said that tillage farmers are hurting after three bad-price years.
“This is the third year of very low prices, two years ago we had the distraction of CAP reform and last year we had a bumper harvest.
But he said that a combination of lower prices and poorer yields have combined to add to tillage farmers woes in 2016.
It is important to try and cut costs where we can. If the present trend continues there will be a huge fall out from the industry.
To limit this fall out, Browne said that tillage farmers voices need to be heard and he is working along side the Tillage Stake Holder ground to ensure that this occurs.
Managing cash flow and finances on tillage farms
According to Teagasc, volatile market conditions combined with unfavourable weather can ruin plans on Irish tillage farms.
To reduce the impact Teagasc advise farmers to use the following recommendations:
- Act early – even the best farmer’s plans and schedules are in need of adjustments. Delays will cause the situation to deteriorate and cause extra stress.
- Be realistic – be realistic and up front in developing your cash flow plan
- Consult – draw up a plan with your Teagasc Advisor, Agricultural Consultant or accountant
- Decide – decide on a course of action using your cash flow plan to form the basis of negotiations with your suppliers and banks