The Bank of Ireland lowered its forecast for the profitability of Irish farms in 2024 due to poor weather conditions, the online publication Agriland reported on April 10.
However, Eoin Lowry, head of agriculture at Bank of Ireland, told the National Food and Feed Security Committee (NFFSC) that the bank “very knowledgeable” about current problems on farms, but added that not all farms are experiencing financial difficulties.
“From a cash flow perspective, we haven’t seen a significant increase in claims in recent weeks, but that doesn’t mean farmers aren’t experiencing financial or cash flow difficulties.”– he said.
Lowry stressed that farmers’ debt to the bank is at its lowest level in 25 years. According to him, the latest data from the Central Bank shows that debt levels in 2023 were 2% lower than the previous year.
However, he warned that feedback from contractors, traders and cooperatives was that they were left with unpaid bills as some farms had serious problems. One of them – “This is the cash flow caused by increased costs, low productivity and excess costs that may have arisen last year when invoices were not paid”.
“We have adjusted downward our profitability forecast for 2024. We do not see a significant increase in raw material prices that could limit the potential for declines in production, whether of milk or cereals.”“, summarized the specialist, highlighting that “Actual costs are likely to be high on several farms”.
Source: Rossa Primavera
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