Teagasc initiative targets farmers struggling with financial pressure

AN initiative to assist farmers facing financial pressure over the next 12 months has been announced by Teagasc.

A financial planning service will be offered to all farmer clients over the next seven weeks as advisers assist them in the completion of their Single Farm Payment application.

Teagasc Advisory Services director Pat Boyle said it is vital that farmers examine their own situation. They need to be sufficiently prepared to approach and negotiate appropriate finance for their farm business in an uncertain and volatile future.

“Despite ongoing government support, banks are restricting credit to private and business customers. Farmers with good credit ratings and equipped with good supporting information on their enterprise will be in a stronger negotiating position,” he said.

Mr Boyle said milk and grain prices have declined in 2009, while beef and sheep margins are modest at best. Farmers face significantly reduced sales receipts for the current year.

This comes on the back of an increase in farm input prices in 2008. Even though the underlying driver of these costs [oil] has come back in price, fertiliser, feed and contractor charges are unlikely to drop to pre-2008 levels.

Some farms have substantial bridging finance until 2011 due to the Government’s decision to phase the payment of grants to 17,000 farmers who completed works under the Farm Waste Management Scheme in 2008.

Sales of one-off sites are more difficult and returns from off-farm investments are more modest.