Machinery cost increases are a "necessary evil" according to Brian Magee who is sales manager with New Holland.

The cost of steel is contributing largely to the increased cost of machinery, however, trade remains strong, Magee told the Irish Farmers Journal on Tuesday at FTMTA in Punchestown.

"Pricing is a hot topic at the minute, commodity prices on the farms are up but so are the steel prices.

"Farmers will always stay buying, as long as farmers have a fiver in their pocket they will spend 6," he said.

Magee added that enquiries have been brisk up until recently and that they have had two fantastic years with business.

Finance

“Instead of taking stuff over five years they’re now taking things over seven years because of the increased costs.

“Farmers are usually in it for the long haul, especially in the Irish market. Yes, it’s becoming more and more of a business nowadays but they’re still family-run businesses and it’s generational,” he said.

It's not like a lot of the mainland UK, Magee said, where it's companies that are farming.

“I see finance as a huge key for the future, however that 0% finance is getting harder and harder to come by,” he said.

Buying new

Maurice Kelly from Kelly’s Agricultural Dealers, in Borris, Co Carlow said: "It is much better to have new machinery and pay a finance payment per year, rather than have a second hand machine that is breaking down and costing them [farmers] a lot of money.

"They lose time at harvesting and they have the cost of repairs.

Sales have been strong this year, he said, adding that increases in farm gate prices for both dairy and tillage have been a contributor.

“If the prices stay up for milk and grain, they’ll stay spending.

Marketing executive with McHale, Eoin Clarke said that they had a good season so far with regards to sales.

“A lot of our business would be done pre the season so it wasn’t too bad, earlier this year things got a bit crazy with costs for farmers.

Machinery prices, he said, are also being driven by doubling steel prices.

“A lot of out machines have an awful amount of steel in them, and price has doubled there for steel alone.

“But overall, we’ve rode out the challenges and things are good and it’s been a good year so far,” he said.

Clarke said that the outlook for the industry as a whole is positive.

“Farmers still have to farm and agriculture still has to go on,” he said.

While demand is still strong for machinery, delivery and availability are more of an issue for buyers than price is, according to regional sales manager with Class, Karol Duigenan,

“The demand for machines has been really good the last two years, 2020 and 2021 were phenomenal years.

“It’s slowed down at the moment but we are optimistic that that is just seasonal,” he said.

Ray Fletcher from Tama, told theIrish Farmers Journal that business has been mixed so far this year.

“Some parts of the country are up and some parts of the country are down.

“Some have increased production and some have decreased,” he said.

Raw material costs and transport costs have driven up costs according to Fletcher.

“We’ve had no supply issues so we can’t complain too much.

“You’d also be thinking straw could be a very valuable crop yet,” he said.