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Agri Pulse

Agri Pulse

August 2020

The Bank of Ireland Agri Pulse for August 2020 found farming sentiment to be relatively subdued. Market disturbance related to COVID-19 along with drought and storm conditions have impacted production and profitability is an issue for many.

Compared with April – when the survey was last carried out – farmers were more optimistic about the outlook for market prices however. Investment plans and growth ambitions ticked up a notch in August too, albeit the UK’s departure from the EU and climate change mitigation actions will pose structural challenges for the sector going forward.

Agri Pulse

August 2020

Key Points

  • Mixed picture in August
  • Farm output down on a year ago
  • Expectations for market prices improve

Agri Pulse

August 2020

“The virus and weather-related disruption of recent months contributed to the muted farming mood in August”

Dr Loretta O’Sullivan
Group Chief Economist
Bank of Ireland

Agri Pulse

August 2020

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Agri Pulse

August 2020

Farm Profitability

Past 12 Months

Shape Created with Sketch. 19%
48%
33%

Balance -15%

(+8 on previous reading)

Agri Pulse

August 2020

Farm Output

Past 12 Months

Shape Created with Sketch. 15%
62%
24%

Balance -9%

(-10 on previous reading)

Agri Pulse

August 2020

Farm Output

Next 12 Months

Shape Created with Sketch. 23%
53%
23%

Balance 0%

(+13 on previous reading)

 

Agri Pulse

August 2020

Input Costs (Excluding Labour)

Past 12 Months

Shape Created with Sketch. 55%
33%
12%

Balance +42%

(+12 on previous reading)

Agri Pulse

August 2020

Market Prices

Next 12 Months

Shape Created with Sketch. 23%
46%
31%

Balance -8%

(+59 on previous reading)

Agri Pulse

August 2020

Investment Plans

Next 12 Months

Shape Created with Sketch. 20%
66%
14%

Agri Pulse

August 2020

Business Ambitions Next 1 to 3 Years

  • Plan on growing 36%
  • Prefer to stay same size 43%
  • Intend to scale down 22%

Agri Pulse

August 2020

Brexit Impact Next 12 Months

  • Significant negative 22%
  • Some negative 49%
  • None 22%
  • Some positive 7%
  • Significant positive 0%

Agri Pulse

August 2020

IMPACT OF CLIMATE CHANGE POLICIES NEXT 1-3 YEARS

  • Significant negative 7%
  • Some negative 48%
  • None 16%
  • Some positive 25%
  • Significant positive 4%