Teagasc talking money

SOME farmers have suffered severe equity shock in the last 24 months, due to off-farm investments made in better times, according to Teagasc.

Some of these investments were heavily leveraged — funded by borrowings — and are now worth a fraction of the initial cost, leaving these farmers in a poorer equity position.

Under-pressure farmers who will need ongoing support and advice in dealing with their financial institutions and other creditors will be identified by a financial planning service offered to all of Teagasc’s 42,000 farmer clients over the next seven weeks, in conjunction with Single Farm Payment application assistance.

Pat Boyle, director of advisory services in Teagasc, said farmers are also threatened by significantly reduced sales receipts, high farm input prices, substantial bridging finance until 2011, due to the Government decision to phase the payment of farm waste grants, and the downturn in the wider economy which has removed the financial cushion which supported many farms.

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