Agriculture is in recovery mode – but production costs are still too high

​But he is also indicating that farmers must act to continually improve efficiency levels within their own businesses. This will entail an ongoing review of all input costs and income streams.

He further explained: “Farmers cannot control international commodity markets. However, they have a total say over what happens within the confines of their own businesses.

“The scope to drive further improvements in performance and efficiency levels across all sectors remains more than significant. These opportunities must be grasped.”

According to the Danske Bank representative, farm support schemes represent critically important income stream for all farm businesses. Significantly, the coming months will see a transition from the existing basic payment scheme to the new Farm Sustainability Payment measures.

Rodney Brown continued: “Large numbers of local farming businesses are very dependent on the support measures available. This has been a reality for many years.

“So, looking ahead, it is vitally important for farmers to maximise the income opportunity that will be on offer courtesy of the new measures set to be rolled out over the coming two years.”

Most dairy and livestock farmers will be very aware of the forage-related challenges created by the much longer than normal winter feeding season that have just come through.

“Lessons have to be learnt from these experiences,” Rodney Brown commented.

“Our changing weather patterns are creating wetter and longer winters. It makes sense that

farmers prepare accordingly. And, fundamentally, this means making sufficient silage.”

Reflecting on the current business status of the various farming sectors, Brown confirmed that milk prices had stabilised and that the prospect of some improvement in milk markets is on the cards.

“Most dairy farmers are now receiving a milk prices in the region of 38 to 39ppl. This includes bonuses for fat and protein.”

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“The accepted breakeven price for milk is in the region of 36ppl. So farmers are slowly getting back to a situation where they can invest in the future of their businesses.

“Recent reductions in feed and fertiliser prices are helping the transition to a more sustainable scenario for the dairy sector.

“Feed costs, in particular, have a very significant impact on profitability levels within the milk industry.”

Where beef and lamb are concerned, the Danske Bank representative confirmed that farmers are enjoying record prices.

“There is no prospect of this scenario changing, certainly in the short term. However, the prospect of red meat imports from New Zealand coming on to the UK market later in the year must be take account of as beef and sheep farmers look to the future.”

Poultry and pigs are also recording high levels of sustainability at the present time.

Rodney Brown again: “Northern Ireland’s egg sector is extremely buoyant at the present time while pig farmers are enjoying the win:win scenario of excellent prices and fast falling feed costs.

“The pig sector is very volatile in nature. However, local producers are well capable of managing these ebbs and flows.”

But it’s not all good news. Rodney Brown admitted that the arable, potato and vegetable sectors are under very significant economic pressure at the pressure at the present time.

He explained: “Growers have been at the mercy of the extreme weather that has characterised the past 12 months. Cereal growers experienced a very difficult harvest last year. And this has been followed by a very late spring planting season in 2024.

“And these exact same challenges have confronted potato and vegetable producers. So, it’s very much a case of hoping that the weather picks up for the rest of the current growing season.”

Rodney Brown made these comments against the backdrop of Danske Bank celebrating its 200th anniversary year.

He commented: “Danske Bank has been passionate about helping people and communities across Northern Ireland thrive since its beginnings in 1824. Over the course of its 200 years in business, Danske Bank has recognised the vital role of agriculture and the agri-food industry in Northern Ireland’s economy.

“With a rich tradition of farming and food productions, Northern Ireland relies heavily on these sectors for economic prosperity. Danske Bank has been at the forefront of providing financial services and support to farmers, agri-businesses and food producers: helping them to thrive and evolve.