IFA Farm Business Chair Rosemary McDonagh said that cashflow challenges are growing on farms as the cumulative effect of higher costs, tax bills, delayed payments and the drop in prices in certain sectors is coming home to roost.
The IFA Farm Business Chair said “farmers need to assess their situation and seek advice and help early if they may come under financial pressure”.
“We are in constant discussions with banks and credit unions in relation to farm finance and the advice is to get in contact with your bank or credit union as soon as possible, if there is a likelihood of a need for finance over the next number of months,” she added.
“After a year of high input costs, combined with falling product prices for most sectors, it is imperative that all farmers look at their finances and see what their cashflows will look like into 2024,” Ms McDonagh stated.
“Banks and credit unions have a number of products, including SBCI lending and the Cultivate product, to assist farmers. There is also the option with some of the lenders to retrospectively finance capital investments that may have been made in the last two years out of cashflow. The earlier you identify a possible problem, the more options you will have to find a solution,” Ms McDonagh concluded.