Financial Situation Facing Farmers Discussed

Teagasc and the ICMSA met to discuss the financial situation facing farmers this year caused by increased price volatility for agricultural produce. A financial planning service is provided by Teagasc advisers to farmers at their annual consultation to assist in filling out their Single Farm Payment application form before 15 May deadline.

With greater price volatility for the main farm-gate produce like milk, beef and grain, this new Teagasc financial planning initiative assists farmers to plan their cash flow for the year ahead. The prices paid to farmers for milk and grain this year have fallen, while beef and sheep farmers face a price-costs squeeze due to an increase in farm input costs in recent years. Farmers are facing significantly reduced sales receipts in 2009.

Speaking after the meeting between the ICMSA and Teagasc, Teagasc Director Professor Gerry Boyle said: ”Dairy farmers are facing particular difficulties this year with a sudden drop in milk price due to lower market returns for dairy produce, which has been exacerbated by the global credit squeeze. Milk production in Europe declined in the last quota year, despite the increased quota available in member states, but the turmoil in international financial markets has created difficulties for Irish exporters.” Teagasc, in consultation with other parties in the industry, will now undertake a review of the factors influencing market returns for Irish dairy produce.