Non-agricultural investments go sour on farmers
Economist Jim Power has confirmed that some farmers who invested in Contract for Difference vehicles “have lost a fortune”.
He was addressing an investment seminar for farmers organised by Farrelly & Mitchell Business Consultants.
Philip Farrelly told farmers that off-farm investment is not for everyone.
He said: “We endeavour to select good properties which have potential for our clients, and some are doing very well out if it, and making a lot of money, but I cannot give you a guarantee that nothing will go wrong.”
Mr Farrelly said many farmers who are getting poor returns on their assets could benefit from investment analysis. Mr Power, chief economist at the Friends First financial services group, advised farmers to make themselves fully aware of off-farm investment risks.
He said CFDs involved speculative investing, describing it as heavily leveraged betting on share prices.
“Don’t put all your eggs in the one basket and don’t invest in what you don’t understand,” he said.
