Irish agriculture is facing “a serious shortage” of farm contractors over the next few years, Ann Gleeson Hanrahan, managing director of the Association of Farm and Forestry Contractors of Ireland (FCI) has warned.

Skyrocketing machinery costs, a scarcity of skilled labour, increased interest rates on machinery financing, rising diesel bills and delays in receiving payment for completed works, are said to be leading to “a major escalation” in business uncertainty on the ground.

It’s understood that at least 50 operators exited in recent years, while FCI also confirmed that Irish contractors have participated in nationwide farmer demonstrations, organised in solidarity with ongoing EU farmer protests over shared green policy concerns.

Speaking to the Irish Farmers Journal, Gleeson Hanrahan, who runs an agricultural contracting business with her family outside Birr, Co Offaly, highlighted the gravity of the situation.

“If things stay going the way they are currently, I guarantee there is going to be a serious shortage of contractors in this country. The price of everything has increased – tractors, balers, ploughs, drills, parts – nothing has stayed stable.

“Most contractor yards need a higher horsepower tractor. Three years ago a 155hp tractor would have been €108,500 plus VAT, today it’s €155,000 for the very same tractor. You’re talking anywhere from a 33pc to a 42pc increase before you even put an implement behind it.

“At the same time, contractor charges over the last three years only increased by 5pc. So it’s very difficult, the contractor ends up carrying the weight. If it continues, more operators are going to exit, the pressure is too much,” she said.

While all contractors are said to be affected, FCI says contractors that are not farmers are taking the hardest hit because they can’t access farmer grants and subsidies on machinery.

“We’re urging Government and the Department of Agriculture to get our contractors through this period. There have been huge losses because it has been so wet, but we never get any support to help us, contractors get no support because we’re not properly recognised, they just consider us all as ‘farmers’.

“Who is going to do the work if more exit? Who is going to cut the grass? Who is going to sow the crops? Who is going to cut the crops? The majority of farmers are stretched, particularly in the dairy sector, they need the support of their contractor to keep their business running.”