bTB restrictions are putting severe economic pressure on many local farms

The challenge centres in the significant and additional costs incurred in keeping animals – that would previously have been sold – until such times as the movement restrictions are lifted.

As a consequence, farms are confronted with the double whammy of losing valuable income streams, albeit temporarily, while at the same time incurring more cost within the business.

Over the past 12 months, approximately 10% of Northern Ireland’s cattle herds have been placed under some form of bTB restriction.

McKervey spoke at the recent launch of Balmoral Show. He confirmed that Ulster Bank fully recognised the challenges faced by farms currently coping with bTB and would act to support the businesses as required.

McKervey also indicated that input cost pressures still remain high within local agriculture.

While fertiliser prices had declined to some extent over recent weeks, the cost of feed and all other the inputs required within local agriculture remain at historically high levels.

Ulster Bank has put a specific support fund in place to help farm businesses meet the ‘input cost’ challenge.

Reflecting on the general state of agriculture in Northern Ireland at the present time, the Ulster Bank representative confirmed that the industry is in good heart, for the most part.

According to McKervey, the level of bank debt accredited to Northern Ireland’s agricultural sectors had fallen from £1.05 billon to £965M as 2022 progressed, a drop of £88m.

However, during the same period, the monies in farming accounts had risen from £584M to £614M, an increase of £30m.

“Falling debt levels, in tandem with more actual monies in farmer accounts, points to an improving economic picture for agriculture as a whole,” he said

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One other interesting economic trend identified that has been identified for the Northern Ireland’s farming sectors relates to the number of loan approvals ‘green lighted’ in 2022.

According to McKervey, this number actually fell during the second half of the year, relative to the number recoded in the first six-month period.

He attributed this trend to the impact that sharp increases in all input costs would have been having on farm businesses at that time.

The Ulster Bank representative confirmed that most of Northern Ireland’s farming sectors are performing well at the present time.

“Where dairy is concerned, milk prices have fallen since the beginning of the year,” he commented.

“This is a direct response to the increase in production, particularly in Europe, that has been recorded over recent months.

“However, there are no concerns, with regard to the continuing viability of the dairy sector. Summer months will likely see cash flow tighten but while most focus on milk price the key will be for how long the drop in price will last.

“And the same principle holds, where beef, sheep and poultry are concerned.”