Almost one in five machinery dealers see increase in business in 2024 – Genfitt

Some 18% of Irish agri-trading businesses have seen an increase in business performance so far in 2024, a further 53% see no change on 2023 performance levels, while the remaining 30% felt performance is below or worse than last year.

This is part of the finding within the ‘Knowledge Report’ issued by the Mayo-based machinery parts and spares wholesale distributor, Genfitt.

This is the ninth edition of the independently commissioned report, which seeks to understand the key factors and trends of Ireland’s agricultural sector year on year.

As part of the survey, there were 2,208 farmer respondents and 112 dealer/manufacturer respondents, covering all 32 counties.

Of the total 112 agri-trading respondents, 33% described themselves as machinery dealers with the remainder made up of hardware stores/motor factors, etc.

Out of those surveyed, the average rated the marketplace as six out of 10.

Meanwhile, 21% of respondents rated the market above eight, which indicates an increased air of optimism on 2023.

While 18% of businesses are experiencing a better year this year than in 2023, 53% have seen the same business performance so far this year in comparison to 2023. The top three factors cited as negatively affecting business most in 2024 are the weather (34%), labour costs and availability (27%) and input prices (14%).

Farmers’ perspectives

Of the 2,208 farmer respondents, 52% felt that their business performed on par with 2023.

Beef farmers accounted for 44% of the sample, while dairy farmers were the next highest at 28%.

Some 66% of Irish farmers have spent or plan to spend less than €10,000 on machinery investments during 2024.

Meanwhile, out of the remaining sample, 25% plan to spend between €10,000 and €25,000, 6% between €50,000 and €100,000, while the remaining 3% expect to spend or have spent over €100,000 on machinery during 2024.

The three most negative concerns cited by respondents and the main reason for lower on farm machinery investments included weather (83%), cost of living (48%) and nitrates regulations (38%). The latter affected 33% of respondents, of which 47% plan to reduce stock numbers in order to remain compliant.

Poor weather endured this spring caused deep frustration and financial implications for all farmers

Regarding online technologies, 72% of farmers have made an online purchase for their farms. Interestingly, 55% of respondents have made a mart transaction online with 71% citing online mart apps as the most used technology.

When it comes to the future of the Irish farming sector, 60% rate the sector between five and seven out of 10.

Focus group

Ultimately, this year’s findings did not prove too dissimilar from the 2023 report, with the combined 5.5/10 outlook of farmers and dealers – when asked about the industry’s prospects for 2025, there was a slight increase in positivity on last year’s sentiment.

Poor weather endured this spring caused deep frustration and financial implications for all farmers.

Although commodity prices remain high, equally high and increasing input prices are having a crippling effect on farmers’ profit margins. The uncertainty around the future of the nitrates derogation has also had a substantial negative effect on the outlook of farmers.

Interest rates and the knock-on effect of geo-political issues were also cited by the group as ongoing worries for the sector into 2025.

The general consensus from the panel is that 2025 is going to be a flat year for the farm machinery sector with a predicted recovery in the first quarter of 2026.