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Congratulations to Teagasc Advisory Service Kanturk, on holding an excellent Fodder and Financial Event on the farm of Peter & Margaret Duggan, Kanturk. The purpose of the event was to get Farmers thinking and recognise that planning ahead is critical


It was an excellent event where clear guidelines were given and options explored , the need for forward planning was emphasised and in using Peter’s details it was clear what benefits could be gained. Teagasc also pointed out that you do not need to be a client to talk to one of their advisers if you need to discuss any feed issues on your farm

A good plan NOW will get every farmer over the line Speakers: Teagasc - Siobhan Kananagh, Pat Barry, David Trant, Fergal O’Mahony, Noreen O’Rahilly, James Fleming, Ger Courtney

AIB – Tadhg Buckley The following material is from data presented at the event


Filling a Fodder Deficit 1.

Act now to build fodder stocks. Don’t assume there will be surplus for sale next year

2.

There is no single strategy to deal with the problem a) b) c)

Demand for fodder – are there unproductive animals that could be sold e.g. empty/cull cows Supply on farm – maximise grass growth for the next few months Supply off farm – consider alternative options – buying silage, maize, whole crop cereal silage, fodder beet, cereal grains, forage crops e.g. kale

3.

Do your fodder budget on the 1st July and the 1st October

4.

Maximise grass production over the coming months to secure winter feed – 1st & 2nd cuts, surplus grass


Filling a Fodder Deficit 5. Things to consider when looking at alternatives a. b. c. d. e. f.

Cost comparison Risk analysis – yield & quantity Handling & storage facilities needed Cost of balancing for protein & minerals Labour input/housing/feed space etc. Cash flow

A good plan NOW will get every farmer over the line


Seeking Cash Flow Support 1. Identify the Problem 2. Quantify the cost 3. Meet bank Relationship Manager


Cash Flow Support - Options • Increase working capital facilities (c/a or stocking loan) • Good option if cashflow issue is short term • Also temporary option pending full restructure

• Switch existing loans to interest –only • Method of reducing financial outgoings in short term • May be long-term financial cost in switching

• Restructure hard-core debt onto term loan • Best option if problem cannot be corrected within 12 months


Seeking Cash Flow Support • Fill in Agri Lending Application Form • Supporting documentation: • Cashflow for 2013 outlining financial requirement • Financial accounts for year ending 2011 – draft 2012 if available • Teagasc Profit Monitor if available


Market Outlook Market Price outlook for 2013 positive  Milk current prices 35-37c/l (average 32c/l 2012)  Factory beef prices at historical highs last year – strengthening further in 2013

 Store cattle prices for lighter cattle much weaker than last year  Grain prices similar to last year


Summary • Make early contact with Bank – don’t ignore the problem

• Advise if situation is urgent or severe • Seek support to fill in Agri Lending Application Form if needed

• Current difficulties mainly short-term in nature • Irish farmers traded through 2009 which is benchmark in terms of difficult trading years • Banks are committed to supporting the sector through current difficulties


Planning ahead is critical • To ensure there is sufficient feeding for stock next winter • Review Stocking rate – are there unproductive animals that could be sold • Maximise grass production • 2 months window to make silage • Realistically gauge what you can grow

• Do a fodder budget on July 1st & Oct 1st • Look at alternatives to filling the gap in silage stocks

Make efficient use of grass grown on the farm for the remainder of 2013

A good plan now WILL get every farmer over the line



Fodder and financial planning event 2