Machinery market confidence 'not improved' since 2023 - report
Confidence in the marketplace for farm machinery has not improved over the course of the last 12 months, according to machinery parts and accessories business Genfitt.
The Genfitt Knowledge Report 2024 has been published, the outworkings of which are partially based on an expert focus group which met on September 10 for a 90-minute discussion.
The group included representatives of the Farm Tractor and Machinery Traders Association (FTMTA); a bank finance specialist; a dairy farmer; a representative of the Association of Farm and Forestry Contractors in Ireland (FCI); and a machinery importer and distributor.
The expert group covered the topics of the state of the market in 2024; the dominant issues in the Irish agricultural sector; and what lies ahead for 2025 and beyond.
According to the report, the "time-honoured" level of resilience within Irish farming "didn't unanimously chime within the focus group".
One expert on the group said: "Farmers, in spite of the many obstacles they face, remain resilient." However, another said: "I wonder just how much resilience there is in farming right now. Many of them are not making money at the moment. But it's just part of the cycle. They will make money again."
The report said that the increase in farm machinery prices, in addition to the ongoing and widespread confusion over the future of the nitrates derogation in Ireland and other nitrates-related issues, indicated that marketplace confidence had not improved on the sentiment expressed in the previous Genfitt report in 2023.
Concerns over the future of the tillage sector and tillage farmers were also expressed, with one member of the focus group saying: "They are, justifiably, not in a good place."
The report said that, while milk grain prices remained high in historical terms and beef prices still strong, the increase in costs on farms "has skyrocketed", significantly driving down margins.
On a slightly brighter note, the summer of this year indicated some improvement for farmers, with deposit rates higher than they were for the same period in 2023.
Other issues highlighted by the expert group included the negativity about the agriculture industry in mainstream media; the ongoing issue of farm succession and its implications for rural Ireland; and the "hyper-focus" on the dairy sector.
One of the focus group members said: "Confidence on the Irish farm has reached an all-time low in recent years.
"Firstly, because there's either no profitability or low profitability. Secondly, there's no clarity around the future direction of the industry due, in no small part, to the nitrates issue. And thirdly, the beleaguered tillage farmer doesn't know whether they will have the land, access to the land or the future land prices which could guarantee a level of income."
The report said that, overall, this year's findings did not prove too dissimilar from the 2023 report, with only a slight improvement in sentiment among farmers and machinery dealers on the industry' prospects for 2025.
The poor weather endured throughout the spring, providing a source of "deep frustration to farmers and growers across the country". Reduced yields, poor grass growth and poor livestock performance, combined with ongoing input cost increases, led to lower profit margins.
The ongoing question marks over the future of the nitrates regulations is proving even more frustrating for farmers "who, in many cases, simply don’t know what they’re permitted to do", according to members of the expert focus group.
