More than half of Irish farmers put off by cost of sustainability
Rising input costs such as feed, fertiliser and energy are the top concerns among respondents to an annual Farm Report conducted by ifac, Ireland’s farming, food and agribusiness specialist professional services firm.
Ifac’s fifth annual Irish farm survey containing the views of 1,160 Irish farmers took place between October and December 2022.
Titled Championing a Sustainable Future, thre report features analysis and tips for each sector (including dairy, beef, sheep, tillage, poultry, pigs, and forestry), as well as informative case studies and helpful articles for Irish farmers on topics such as succession, renewables, Nitrates Banding, organic farming, interest rates, sustainable investments, employment, and the Fair Deal Scheme).
As anticipated, climate action is a matter of extreme concern. More than half (52%) of farmers surveyed say the biggest barrier to adopting renewable projects is the level of financial investment required coupled with the low returns. Yet, to help tackle rising energy costs and for long-term sustainability, Forty-one per cent say they would lease land to a solar or wind project if the opportunity arose, signalling an appetite for farmer-developed projects (wind energy or solar panels on farms) when targeted schemes come into effect.
The report confirms the impact of the cost-of-living crisis and input cost inflation on farm businesses as 75% of Irish farmers say their biggest worry for 2023 is input prices (up 10% on last year). While more than 54% are concerned about their electricity and gas costs at home, just 34% have not reviewed their energy provider in the past 12-months; a potential missed opportunity when small savings can still be achieved by switching.
Nitrate efficiency, to protect water quality and the environment, is another focus for Irish farmers, 35% have not checked if the nitrate banding rates will affect their farms. The recent derogation changes and the introduction of the Nitrates Action Plan are likely to have far-reaching income effects for a large cohort of Irish dairy farmers.
The report also found that 56% of farmers have a positive outlook for the year ahead – with 74% planning to still be farming in five years’ time.
Fuel and transport costs were also a key concern for 51% of farmers, and 57% said they are worried about regulations and bureaucracy. Almost half (48%) say the cost is the biggest barrier to introducing more technology on their farms.
“Our great sector is facing a period of challenge, as highlighted in ifac’s report, from rising inflation to environmental concerns,” said Minister for Agriculture, Food and the Marine, Charlie McConalogue. “However, it is promising to also see that well over half of Irish farmers remain positive about the year ahead. Both I and the entire Government have been working to support Irish farm families’ livelihoods through these continuing uncertain times, helping them build more resilient businesses in the short and long term.
“Be that through the €90 million in direct support farmers including the €1,000/farmer Silage Incentive Scheme as a result of the illegal war in Ukraine or the new €9.8 billionn CAP, we are focussed on supporting our fam families now and into the future.”
John Donoghue, chief executive of ifac said: “There is no denying that farmers have experienced serious cost increases in 2022 so, it is encouraging to see that more than half of our survey respondents are optimistic for the coming year, with three-quarters planning to still be farming in five years’ time.
“While the recent nitrates derogation changes are not without challenges, there are also opportunities. In areas like organics and, hopefully, renewables. Irish farmers have always been at the forefront of innovation and our report again outlines their commitment to positive environmental initiatives. Owing to fears about farm viability, succession planning is still being put on the back burner. However, in our experience, with the right financial advice and planning a viable option can be identified to help future-proof farm businesses.
“At ifac, we have been supporting and advising farming families for 48 years. We provide expert, tailored advice and a range of supports to help farmers manage their farm finances, enhance efficiencies, and build and strengthen overall profitability. Our teams will continue to support farm families for the next five years and, hopefully, well beyond through all the challenges and opportunities as they unfold.”
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