‘Younger farmers are more ambitious, with three in five (61%) of those aged under 50 planning to grow the business over the coming years’ – Dr Loretta O’Sullivan.
Four in ten (43%) farmers plan to expand their farms over the next one to three years, with a similar number (44%) indicating that they would prefer the farm to remain the same size, and 13% intending to scale down.
New research, conducted for Bank of Ireland’s ‘Agri Pulse’, surveyed farmers on a range of topics including farm output, input costs, market prices, their investment plans and business ambitions.
One in four farmers (25%) expect to see an increase in output over the next 12 months, with 62% expecting no change. One in three (31%) saw an increase in farm output over the past 12 months, with half (52%) seeing the same output.
More investment
The Agri Pulse points to broadly positive sentiment among the farmers that participated in the study. One in four (24%) expect to increase investment in the farm in the next 12 months, with 59% keeping the same level. Replacing and upgrading buildings, equipment and vehicles and purchasing livestock are the main focus, with investment in new farm buildings, land and equipment and vehicles also cited (especially by dairy farmers). The majority plan on spending up to €50,000.
“The results show that a large number of farming businesses are on a growth track. While most of those planning on expanding over the next one to three years are likely to do so cautiously, the rest are set to actively pursue opportunities to grow. Younger farmers are more ambitious, with three in five (61%) of those aged under 50 planning to grow the business over the coming years,” says Dr Loretta O’Sullivan, group chief economist, Bank of Ireland.
The pressure points
The data points to some pressures on the input
