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Agri Pulse

Agri Pulse

August 2018

The Bank of Ireland Agri Pulse for August 2018 found farmers rather downbeat. Compared with April – when the survey was last carried out – sentiment was softer on a number of fronts, including current production, costs, farm profitability and the outlook for market prices.

Drought conditions and renewed Brexit uncertainty over the summer period dampened the mood. Production expectations were up on April though and investment plans were little changed, which suggests that a number of farmers are also looking through present difficulties and keeping an eye on potential opportunities.

Agri Pulse

August 2018

Key Points

  • Sentiment softer in August
  • Weather conditions at play
  • Farm profitability under pressure

Agri Pulse

August 2018

With the summer drought coming on top of the bad weather and the fodder crisis earlier in the year, the farming mood was muted in August.”

Dr Loretta O’Sullivan
Group Chief Economist
Bank of Ireland

Agri Pulse

August 2018

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Agri Pulse

August 2018

Farm Profitability

Past 12 Months

Shape Created with Sketch. 16%
46%
38%

Balance -21%

(-29 on previous reading)

Agri Pulse

August 2018

Farm Output

Past 12 Months

Shape Created with Sketch. 20%
54%
25%

Balance -5%

(-20 on previous reading)

Agri Pulse

August 2018

Farm Output

Next 12 Months

Shape Created with Sketch. 30%
46%
24%

Balance +6%

(+10 on previous reading)

 

Agri Pulse

August 2018

Input Costs (Excluding Labour)

Past 12 Months

Shape Created with Sketch. 71%
26%
3%

Balance +68%

(+8 on previous reading)

Agri Pulse

August 2018

Market Prices

Next 12 Months

Shape Created with Sketch. 25%
37%
39%

Balance -14%

(-4 on previous reading)

Agri Pulse

August 2018

Investment Plans

Next 12 Months

Shape Created with Sketch. 27%
60%
14%

Agri Pulse

August 2018

Business Ambitions Next 1 to 3 Years

  • Plan on growing 40%
  • Prefer to stay same size 42%
  • Intend to scale down 18%

Agri Pulse

August 2018

Brexit Impact Next 12 Months

  • Significant negative 34%
  • Some negative 41%
  • None 18%
  • Some positive 5%
  • Significant positive 2%