Listen: 20 mins with John Donoghue, IFAC CEO

The Irish Farmers Journal sits down with John Donoghue, CEO IFAC on what he sees as the biggest challenges and opportunities for Irish farmers right now

Eoin Lowry

3 August 2016

Listen: 20 mins with John Donoghue, IFAC CEO

CEO of IFAC John Donoghue

What is the mood with your farming customers currently?This is best described as subdued. The positivity surrounding the end of milk quotas has weakened on the low milk price, beef and sheep sectors are worried by Brexit and tillage yields are lower than last year.

What is the mood with your farming customers currently?

This is best described as subdued. The positivity surrounding the end of milk quotas has weakened on the low milk price, beef and sheep sectors are worried by Brexit and tillage yields are lower than last year.

What do you see as the big challenges for farmers currently?

The biggest challenges in farming always lie inside the farm gate. Cashflow is the big one this year, due to poor commodity prices. Expenses haven’t fallen in line with income and interest rates remain high, so margins are tight.

What is the largest competitive advantage of Irish farmers/agriculture?

I think the focus on using our agricultural produce to develop added-value products and strong brands will be key to improving the prices farmers receive for their outputs.

What is the biggest weakness in the sector and what needs to change?

Ireland is a small producer and we need to produce premium product. We are producing a premium product, but are we getting premium prices? We need to continue to access new markets. More investment is needed in this area.

What would you like to see introduced that could aid cashflow to farmers?

Our national tax policies could be more progressive. Agriculture is Ireland’s real engine and the Government needs to invest more money in agriculture.

Are you seeing farm incomes come under more pressure this year?

Definitely, incomes are down in 2016 and cashflow management is a big challenge.

What should a farmer do if he finds himself under financial pressure?

Good planning is step one. Reduce expenses or defer capital projects or machinery purchases. Step two is communication. Be open and upfront. Waiting until you have missed a payment is too late to negotiate deferrals or loan restructures.

What value does IFAC bring to farmers?

Currently we are working with our members to identify cashflow problems and advise them on dealing with banks and suppliers. Having advisers who understand farmers’ businesses is important.

What do you see as the future of the sector?

World population is growing and people need to eat so farming will always have a place. In the future, technology and a race towards scale will have an impact but our opportunity to continue to be a world-leading food producer won’t change.