Don’t make unnecessary expenditure, farmers told

EVEN routine operations on dairy farms are coming under the microscope, as lower milk prices combine with inflation to force milk producers to tighten their belts. For example, advisors are reminding farmers that it costs €8 or 10 per acre just to top a field or to spread fertiliser.

However, not all spending is ruled out by Teagasc Specialist Advisor, Tom O’Dwyer. “Investment in additional quota still represents good value for money”, he advised in the Todays Farm specialist publication for Teagasc clients.

“Unnecessary capital expenditure must be avoided at the moment. Farmers need to think very carefully about entering into new leasing, hire purchase or loan arrangements at present. While new machinery or buildings may be beneficial, the liability will still remain at the end of the year, and the repayments will still have to be met in the future”.