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Cash-strapped farmers are being forced to lean on merchants, contractors and vets as a source of credit for longer periods of time, an Irish Farmers Journal/Red C poll of 1,000 farmers has found.
The nature of the Irish agribusiness is a heavy credit cycle
Two-thirds of farmers surveyed are in debt to at least one creditor or supplier, with one in three farmers reporting that they or someone close to them have been affected by financial difficulty. With 41% of farmers owing money to the bank, a large number also have debts with the merchant, contractor and vet.
The length of time that the bill is unpaid reveals the real pressure points, with 20% of farmers not paying the merchant for at least six months and another 20% not paying for more than a year.
“The nature of the Irish agribusiness is a heavy credit cycle.
Of course we would prefer to shorten the period of credit outstanding, given the risks involved,” Brett Bros chief executive Jimmy Brett told the Irish Farmers Journal.
“At present, our credit outstanding is at the same level for the last six years.”
Contractors, too, are owed money for more than six months by 40% of farmers, with an estimated €200m owed and €60m of that long-term debt.
In addition to debt, farmers revealed how they have been affected by rural crime, loneliness and debt.
Merchants, contractors and vets carrying lengthy farm debts
Contractors owed more than €200m - FCI
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