The level of investment taking place on dairy farms in the south of the country has slowed in the last year, according to AIB agri-adviser Donal Whelton.
Whelton is based in the south and said there had been significant investment in the region since quotas were lifted but that it “wasn’t going to continue at the same pace”.
Speaking at an AIB shed talk at the National Ploughing Championships, he said activity had begun to move towards the midlands into counties such as Laois and Kildare.
Debt levels peaked at €5.2bn in 2009. Today, we have debt levels of €3.5bn
Whelton said during the expansion period Irish farms had managed investment well.
“Despite all that investment that has taken place, if you actually look at the total debt levels on Irish farms now compared to 10 years ago in 2009, debt levels peaked at €5.2bn in 2009. Today, we have debt levels of €3.5bn.
“The level of payback and flow back of debt has been much more significant to reduce the level from €5.2bn to €3.5bn,” Whelton said.
Whelton explained that debt levels on Irish farmers were a huge economic advantage. In New Zealand the average debt per farm is €2m. In Ireland, the average debt per farmer is just €35,000 to €40,000, Whelton said.
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The level of investment taking place on dairy farms in the south of the country has slowed in the last year, according to AIB agri-adviser Donal Whelton.
Whelton is based in the south and said there had been significant investment in the region since quotas were lifted but that it “wasn’t going to continue at the same pace”.
Speaking at an AIB shed talk at the National Ploughing Championships, he said activity had begun to move towards the midlands into counties such as Laois and Kildare.
Debt levels peaked at €5.2bn in 2009. Today, we have debt levels of €3.5bn
Whelton said during the expansion period Irish farms had managed investment well.
“Despite all that investment that has taken place, if you actually look at the total debt levels on Irish farms now compared to 10 years ago in 2009, debt levels peaked at €5.2bn in 2009. Today, we have debt levels of €3.5bn.
“The level of payback and flow back of debt has been much more significant to reduce the level from €5.2bn to €3.5bn,” Whelton said.
Whelton explained that debt levels on Irish farmers were a huge economic advantage. In New Zealand the average debt per farm is €2m. In Ireland, the average debt per farmer is just €35,000 to €40,000, Whelton said.
Read more
Watch: machinery highlights at the Ploughing
Ploughing 2019: ‘we’re producing a top-quality product; why can’t we get paid?’
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