AN accountant has said that increased interest rates, farm costs and poor weather are contributing to a "drop in quality of life for farmers".

Omagh-based accountant and Irvinestown man, Seamus McCaffrey,  said that farmers are currently facing many factors that are having a direct impact on both income and profitability. 

"There has been a drop in income," confirmed Mr. McCaffrey, who has several farming clients. 

 "In some cases, it's significant. In other cases, it's not too significant.

"But, the factors that are contributing to that include changing weather patterns; an increase in bank interest rates, and an increase in farm costs.

"There is, as well, the increase in many cases of farmers using merchant credit, and that is very expensive."

Mr. McCaffrey continued: "Economically, they [farmers] are making less money.

"There is more working capital tied up, and it's so significant compared to years ago. The changing weather is making life harder for agricultural contractors.

"There is no particular thing, but when you put all things together, the quality of life for a farmer isn't as good as it used to be."

Mr. McCaffrey said that while the current financial climate may make planning for the future difficult for farmers, it is important that they "maintain relationships" with both banks and merchants during tough financial periods. 

"I feel that the key here is the need to maintain relationships with merchants, and the need to maintain relationships with banks," he explained.  

"To do that, a farmer needs to have very up-to-date financial recording, and in most cases, they need to do a cash flow forecast to see what amount of money is needed to get them over the winter. 

"If they feel they are going to hit their overdraft limit, they need to inform the bank of that in good time, backed by cash flow forecast and up-to-date accounts.

"They also need to know what their tax liability is going to be for January, 2025."

Mr. McCaffrey said that within farming, "sustainability" is being talked about more and more.  This year alone, the Department is already rolling to help improve productivity and environmental sustainability of the beef sector. 

However, the Irvinestown accountant feels that "financial sustainability" on farms will be an important driver for these schemes. 

"The whole sustainability element is being talked about more, but the key to farming is financial sustainability," he said. 

"If the farm is making a profit, and is doing well economically, then the farmer will always spend money and do things to make the farming environmentally sustainable. 

"Financial sustainability is key here; it will be the driver."