FARMING: Heatwave costing farmers €1,750 per week in additional costs

4 July 2018
By Mary Bermingham
mary@TheCork.ie

  • IFAC warn farmers to plan for winter fodder stocks now to avoid problems later in the year
  • Farmers should get a cashflow budget in place to help meet financial commitments this year

The accountancy and financial advisory firm IFAC (www.ifac.ie) today warned that the current heatwave sweeping the country is costing an average dairy farmer €250 per day or €1,750 per week. Between the anticipated extra costs for feed because of poor grass growth and additional in parlour feed costs to maintain milk production, farmers are feeling the financial pinch.

Many farmers have their own wells, while others rely on mains supplies from Irish Water. Either way water is a scarce resource this month.

IFAC teams around the country are working hard with farm families nationwide to ensure that they have fodder budgets in place and to help them anticipate the pressure that the current hot weather could put on their cash flow.

Speaking today Gearoid Condon partner and head of the IFAC Bandon, Co Cork office said; “This current spell of hot weather will have a knock-on effect on the levels of fodder that a farmer can store for the winter so on farm planning needs to happen now to ensure that farmers can have access to and can afford to buy in additional feed stock. In what has already been an expensive year this heatwave is adding significant additional on farm costs. We estimate that the heatwave is costing about €1,750 a week for the average dairy farmer in additional costs.”

“Farmers shouldn’t ignore the problem and should plan for financial pressures coming down the tracks. We’re working with farmers to put cashflow budgets in place so that farmers are in a better position to meet all their financial commitments for the year. It’s the sensible thing to do.”

“Banks hate surprises. We’re advising farmers to work with the banks now to let them know how they’re planning to manage the additional costs brought on by this heatwave and how they’re going to pay their bills over the winter. Always be honest and upfront with banks. If you have a good thought out financial plan that conversation tends to be easier. Take the time and talk to your agri-advisor and your accountant.”

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