Many operations will simply "go out of business" if nothing changes soon for farmers facing the current inputs crisis, says Irish Farmers' Association (IFA) farm business chair Rose Mary McDonagh.

She said that farmers across all sectors are being hit by an array of spiralling input costs, which are eroding already-low margins for most.

"Aggregate agricultural output prices rose by 19.2% in February versus 2021 levels, but aggregate input prices rose by over 28%," she said.

Increases in inputs were seen in certain fertilisers which are up 180%, fuel which is up 38.5% and feed which is up 20%, with electricity up 22%.

'Not sustainable'

"It’s simply just not sustainable at current levels.

"Farmers cannot be left in limbo and expected to carry on regardless, to simply suck up the uncertainty and take the losses to ensure food security for Irish consumers," she said.

More forward thinking and swift strategic action from Government is needed, according to McDonagh.

"Unlike others, farmers haven’t the luxury of being able to pass on the added cost of production to others and we cannot be left to carry all the risk and cost of the energy crisis,” she said.

Tillage Incentive Scheme

McDonagh argued that there’s no point investing in crops now if there’s no fertiliser to support its growth along the way or even fuel for the agri contractors to harvest it.

"Detailed inventories on fertiliser, fuel, feed stocks must be completed as a matter of urgency and priority given to farmers and contractors to preserve food and feed security,” she said.

EU crisis reserve fund

"We’ve been told we’re getting over €15m from the EU crisis reserve fund and that Government can top up to close to €50m, but we’ve no clarity if this will happen or what kind of supports are potentially going to be made available," she said.

It’s now that farmers need to be saving up the ground for first-cut silage

She said that supports are needed to grow additional grass silage/fodder for the coming winter.

"It’s now that farmers need to be saving up the ground for first-cut silage,” she said.

She added that farmers had to pay up front to secure necessary inputs this spring, where before they may have purchased on credit and paid during peak milk, when stock was sold or the harvest complete.

"Financial institutions need to take a flexible and understanding approach and support those most impacted, ensuring a swift turnaround in the provision of low-cost working capital,” she said.

Electronic funds transfer

McDonagh also argued that traders and processors offer electronic funds transfer as an option to speed up the transfer of funds into accounts, rather than rely on inefficient cheque payment processes with associated delays in postage, lodgement and clearance.

Ulster Bank's exit

The phased exit of Ulster Bank from the market is also creating another layer of complexity for many, she added.

"We must avoid any situation where farmers have no functional business current account or overdraft to maintain on-farm operations," she said.

Farmers themselves will need to act and do what is right for themselves, but they need clear direction and support to make the transition as seamless as possible, she added.