FJ: What is the mood with your farming customers currently?

PR: This is shaping up to be a difficult year. Farmers are under pressure, and even with Nitrogen prices back 25% they are careful on what they are spending, be that inputs or capital. Because of the relatively strong back-end last year, farmers came into 2016 in good shape. For this reason, we are not seeing an extension of credit at the moment, but that will change by the end of the year.

FJ: What are the big challenges for your sector currently?

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While volatility is an issue, it is actually the low prices that are the real problem. Farmers who have expanded with increased borrowings are financially vulnerable to these swings in volatility. Tillage farmers are not making money and with 50% of grain grown on con-acre, in marginal tillage areas, tillage is losing out to dairy. The tax incentives for long term leases are actually making it more difficult for tillage farmers to access land.

What is our greatest competitive advantage?

There is huge untapped potential. The fact is that there is still a lot of poorly farmed land in the system. The grass-based system is working but we are confident that feed volumes will increase over time on a per-acre basis.

What is the biggest threat to your sector right now?

The proposed ban on the use of glyphosate. Most of the world’s crop is grown with glyphosate and this could have serious implications for European farmers.

What is the biggest weakness in your sector and what needs to change?

Lack of scale but scale should not be gained at the expense of the family farming model. Young people will drive change and they must be given access to land.

What do you see as the future of your sector?

I’m always a glass half full person and while it is challenging currently, the long term fundamentals remain strong. We do need to build scale.

What value do independent merchants offer the sector?

We offer a real alternative to the co-op model. We are a family businesses and senior managers are very close to or farming themselves. We continue to invest in our business to become more efficient and offer the value to farmers.