Credit issues are coming into sharp focus as many farmers are forced to feed additional meal to counter the shortfall in grass growth during the drought, while still faced with the overhang of winter bills.
“Demand is up 75% compared to last July,” Denis Howard of feed provider Howard Farms said.
The north Cork feed mill has seen the highest demand come from the dairy sector, but Howard said that other sectors, including beef and sheep were starting to come under pressure.
“When bills are running into €40,000 or €50,000 you have to wonder when to stop. Credit is going to become an issue this year, and it won’t just be confined to the big farmers or certain sectors.”
Farmers are facing a six-day wait in feed deliveries from Dairygold and the Roscrea-based Liffey Mills is also reporting a substantial increase in demand.
“The first week of July has been similar in demand to the first week in April this year, which was in the middle of the fodder crisis,” Pat Ryan, managing director of Liffey Mills said, adding that many farmers were relying heavily on the milk price being maintained.
The surge in demand is lower in less dairy dominant counties, with Smyths Daleside Animal Feeds in Donegal telling the Irish Farmers Journal that demand is up 9%, but credit is still an issue.
“We’re under pressure with farmers’ expectations for credit in light of the increased volumes that they are using and the backlog of bills from the winter,” Ray Winters of Smyths said.
A number of banks have put measures in place to support farmers as credit concerns grow, including helplines and working capital extensions, and banks are encouraging farmers to contact them for support on working through credit options.
“While to date AIB has not seen a substantial increase in overall overdraft usage in the agri sector, which is currently similar to 2017 levels, we do expect this to change in the coming weeks as bills incurred as a result of the weather difficulties are paid,” Tadhg Buckley, AIB head of agriculture, told the Irish Farmers Journal.
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Credit issues are coming into sharp focus as many farmers are forced to feed additional meal to counter the shortfall in grass growth during the drought, while still faced with the overhang of winter bills.
“Demand is up 75% compared to last July,” Denis Howard of feed provider Howard Farms said.
The north Cork feed mill has seen the highest demand come from the dairy sector, but Howard said that other sectors, including beef and sheep were starting to come under pressure.
“When bills are running into €40,000 or €50,000 you have to wonder when to stop. Credit is going to become an issue this year, and it won’t just be confined to the big farmers or certain sectors.”
Farmers are facing a six-day wait in feed deliveries from Dairygold and the Roscrea-based Liffey Mills is also reporting a substantial increase in demand.
“The first week of July has been similar in demand to the first week in April this year, which was in the middle of the fodder crisis,” Pat Ryan, managing director of Liffey Mills said, adding that many farmers were relying heavily on the milk price being maintained.
The surge in demand is lower in less dairy dominant counties, with Smyths Daleside Animal Feeds in Donegal telling the Irish Farmers Journal that demand is up 9%, but credit is still an issue.
“We’re under pressure with farmers’ expectations for credit in light of the increased volumes that they are using and the backlog of bills from the winter,” Ray Winters of Smyths said.
A number of banks have put measures in place to support farmers as credit concerns grow, including helplines and working capital extensions, and banks are encouraging farmers to contact them for support on working through credit options.
“While to date AIB has not seen a substantial increase in overall overdraft usage in the agri sector, which is currently similar to 2017 levels, we do expect this to change in the coming weeks as bills incurred as a result of the weather difficulties are paid,” Tadhg Buckley, AIB head of agriculture, told the Irish Farmers Journal.
Read more
Ulster Bank sets aside €15m for drought-stricken farmers
Drought prompts bank to suspend some loan repayments
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