Loans

A couple of farmers have been on to me over the last few weeks complaining about the delay in getting money drawn down from loan applications. It appears to be an issue with the sector as a whole. The reality is it is a slow process and it will take months rather than weeks between an application being submitted and a loan being drawn down. The main issue is around security and it can take months for land title to be sorted out, even in what would be considered a straightforward loan. The key point is to apply in plenty of time, ideally six months before you need the money. Otherwise you could be left waiting for it.

Alternatives to traditional bank loans are available, both from Credit Unions and through Finance Ireland (Milk Flex). The advantage of these is that land is not taken as security so the turnaround time between application and drawdown is faster and the interest rate charged is usually lower than unsecured bank loans. However, there is a cap on how much can be drawn down and the term is relatively short at between seven and eight years so they are not suitable for everyone.

There are two new Government-backed loan schemes in the pipeline – the Future Growth Loan Scheme and a new version of the Credit Guarantee Scheme. Both of these loans will be government backed so land will not be required as security, but the details have yet to be announced. They are expected to be available within the next few weeks and will be administered through the banks.

Animal health

There’s a timely reminder about the importance of the salmonella vaccine in this week’s Dairylink. While the consequences in this case were not that severe, not all farmers get away as light. In-calf heifers will need two shots, about three weeks apart. Cows that have been correctly vaccinated previously will just need one shot. Continue to monitor all animals for signs of lungworm. It is expected to be a bigger issue this autumn after all the heavy rain in August. It can be difficult to treat correctly so speak to your vet and get tailored advice if there is an issue.

Grass

Growth rates have eased a bit from the highs of mid-August but are still higher than normal and most farms continue to be growing 60kg to 80kg/day. The focus is well and truly on building up covers. September is critical as it is the last month where growth is usually higher than demand. By October, farmers will be eating into covers. According to PastureBase figures, most farmers are behind target for average farm cover but only marginally and more land, such as that for reseeding and silage, is yet to come back in.

However, farmers can’t be complacent and if targets aren’t being met in September, action needs to be taken. Reduce demand by removing surplus stock and cull cows from the milking platform and/or increasing supplement. A small bit of supplement now will have a much greater effect on average farm cover than a large amount of supplement later in the year because grass is growing faster now. Key message is to do a grass walk and do a grass budget.