There is a growing concern that farmers in Northern Ireland (NI) are not buying enough fertiliser to meet their full needs in 2022.

This may well be a direct response to the explosion in all commodity prices but a failure to grow enough grass now could leave farmers short of silage next winter, according to Ulster Bank’s senior agriculture manager, Cormac McKervey.

Speaking at the launch of the 2022 Balmoral Show, he said:

“Given the strict limitations on commercial credit right now, I thought that we would have had greater numbers of farmers contacting the bank, seeking finance to secure their 2022 fertiliser supplies.

However, McKervey firmly believes that such an approach represents a false economy.

“Any shortfalls in silage availability next winter will have to be made up for through the purchase of very expensive concentrate feeds," he said.

According to McKervey, farmers should not be using their overdrafts to purchase fertiliser at the present time.

“A better option is to sort out a loan arrangement with the bank, which can be paid back over a six-month period, or settled in full when the 2022 single payment monies arrive.”

All production sectors within agriculture are faring reasonably well at the present time, he said.

“Yes there will be a time lag between input costs rising and farmgate returns responding in kind.

McKervey also pointed out that the likes of farmgate milk prices will remain strong into the medium term, at least.

“This is because dairy production levels are falling internationally at the present time,” he said.

McKervey added:

“The economics of production agriculture remain fundamentally sound. And the banks are available to support farmers in meeting the challenge of fast-rising input costs."

McKervey admitted that pig farmers have been under significant financial pressure for the past six months.

“More importantly, the rise in pig prices of recent days gives some hope that the tide is turning, somewhat, in favour of farmers.”