Input costs, succession and the weather top the concerns of Irish farmers
IRISH farmers are facing another year of uncertainty with input prices, the challenge of succession planning, the nitrates cuts and our weather all weighing heavily on their minds.
That’s according to the Irish Farm Report 2024 conducted by ifac, Ireland’s farming, food and agribusiness specialist professional services firm.
The report features findings from its annual farmer survey containing the views of 1,048 Irish farmers; the survey took place between October and November 2023.
For the third year running, concerns about input prices are high. According to the findings, 66% of Irish farmers say input prices are still the biggest concern. And the financial pressure doesn’t stop there – 1 in 3 are unsure if they have sufficient working capital/ cash on hand for the next 6 months.
The survey also shows that succession planning is still a major stumbling block for farmers. Almost half of Irish farming families (48%) have yet to identify a successor; an improvement on last year, at 69%, and the first move in the right direction in years. However, 94% still believe there are significant challenges for succession planning, with 1 in 4 naming viability as the biggest obstacle. While succession is certainly more topical, failing to take the first step of identifying a successor or considering an alternative option (e.g. partnership, leasing, or selling up) is preventing farming families from securing the future of their farm and providing sustainable incomes for those retiring and the next generation.
In addition, climate action is at the forefront of farmers’ minds, and they remain committed to taking on projects that benefit the environment. If the opportunity arose, 41% of respondents would lease land to a solar or wind project, yet 48% see financial investment/ return as the biggest barrier to considering renewable diversification on farms. Adverse weather conditions and the impact they had on profitability, particularly in tillage, have caused real concerns this year. Over half of farmers surveyed cited the impact of weather as a key concern, an increase of 28% on the 2023 report’s findings.
The findings also point to issues with employment and the struggle to find available farm employees. Of the farmers surveyed, 30% say they will not have enough staff throughout 2024 and 4 in 5 of those employing family members on their farms (sole traders) are not aware of the difference in benefits of the PRSI classes, unknowingly preventing their family members from benefiting from the Class A advantages.
Ifac’s Irish Farm Report 2024 also features helpful case studies and plenty of
PiICTURE COURTESY OF IFAC advice for Irish farmers on beneficiaries exposed to tax a whole host of topics such issues as managing successors, - one in three have no the Women Farmers’ pension in place
Capital Investment - one in four do not have Scheme, maximising time or do not know if they as a young farmer, cashflow have sufficient life cover tips, auto-enrolment (semimandatory (excl. that required for a retirement mortgage) savings), the potential - Nearly one-fifth say of solar, transitioning to there is a lack of interest winter milk, and the Class from the next generation A PSRI advantages for in the farming lifestyle. family members working John Donoghue, Chief on the farm. Executive of ifac said:
Other key takeaways “At ifac, we have been include: providing expert, tailored
- With a steady decline advice and a range of over the past 4 years, 16% supports to help farming less farmers now plan to families for 49 years. be farming in 5 years’ time “Our teams all over compared to in 2021 the country are on hand
- Almost three-quarters to help farmers manage (74%) of tillage farmers their finances, enhance are concerned about the efficiencies, and strengthen weather their businesses. While
- one in four do not many farmers are prepare budgets or concerned about the things forecasts they cannot control, there
- A quarter of farmers are still opportunities for claimed planned farm many to ease some of expenditure was affected their worries about the by delays in TAMS III future by getting the right approval financial advice about the
- 90% do not understand actions they can take such the Fair Deal Scheme as identifying a willing
- one in two have no Will successor; putting a Will, in place, leaving potential sufficient life cover and a pension in place; preparing budgets and managing cash flow. All of which is contained in our sixth Irish Farm Report.
“Also, this year, the reduced nitrogen limits on Irish dairy farms to protect water quality and the environment are likely to have far-reaching income effects for Irish dairy farmers. Regardless of the route they take, these farmers need to assess their circumstances and develop a plan that will help them to achieve the environmental objectives and their business objectives.”
“Our report demonstrates the steps that can be taken with the right advice to solve some of the worries farmers have, in particular around succession and cash management.”
A top-ten accountancy firm with its 30-office footprint and a dedicated team of 500 professionals, ifac has been committed to serving its farming, food, and agri-business clients across the country for the past 49 years.