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24/05/2011
Farmers Keeping Business 'In The Family'
Farmers in NI are still following tradition and passing on their farms to their children and their descendants.
A Northern Bank survey of agri-businesses has revealed a high level of succession and followed a survey of 365 farmers and agri-business owners, which was commissioned by the bank and conducted at this year's Royal Ulster Agricultural Society Balmoral Show.
It reported that almost three quarters (74%) of respondents indicated that succession by a family member was likely, with a further 14% saying that this was possible and only 12% saying that they will not be succeeded.
Northern Bank Chief Economist Angela McGowan (pictured) said: "Agriculture remains at the heart of the Northern Ireland economy and is key to the survival of rural communities.
"As one of the few sectors to have seen continued growth throughout the economic downturn, agriculture is forecast to be one of the best performers this year and will be key to the economic success of Northern Ireland in the coming years, so Northern Bank's commitment to the industry will be stronger than ever."
Commenting on the results, Head of Agriculture John Henning, said: "It is encouraging to note that the majority of those surveyed predict succession in their agri-business, with only a very small percentage indicating that this will not be the case.
"Although the continued growth of the agricultural sector Northern Ireland may be a factor in this, such high levels of succession can be attributed to the current lack of career options elsewhere that has come with the recession, meaning that taking over the family farm or agri-business is a serious option for the next generations."
Other traditional issues covered means of payment and found that over half (52%) of those surveyed named the cheque as their preferred method of payment for expenses such as feed and fertiliser, while 29% favoured credit or debit card and 12% still prefer to pay in cash.
"As expected, the survey results reveal a heavy reliance on cheques - particularly among those over 45 years of age, who formed almost 80 per cent of the response," continued Mr Henning.
"Northern Bank is strongly committed to facilitating business modernisation for our customers, including the use of alternative payment solutions, so it is positive to note that when asked if the proposed industry changes to the use of cheques would cause difficulty in managing incoming and outgoing payments, 40% of the total 365 respondents said that it wouldn't, and a further 30% said that they could get used to other methods of payments."
Challenges
When asked to name the greatest challenge facing the agricultural industry in Northern Ireland in the coming years, one third (33%) said the Common Agricultural Policy (CAP) Reform, while 18% predicted global commodity prices and 18% said supermarket power would be a challenge.
Sixteen per cent, meanwhile, reported lack of working capital to be a likely challenge and the remaining 15% said competitive pricing.
"The prominence of CAP Reform in the results is no surprise," said Mr Henning. "When asked about the funding of the CAP budget after the 2013 Reform, an overwhelming 80% were not confident or unsure that adequate funding would be allocated."
Further to this, the survey also reveals high levels of concern around the review of the Single Farm Payment (SFP) - with 68% saying they were concerned or very concerned and a 25% remaining unsure.
"As the debate around the CAP continues, the support of the banks in Northern Ireland will be even more crucial and, with over half of Northern Ireland's farmers banking with Northern Bank, our commitment to the agriculture sector is unrivalled," he explained.
(BMcC/GK)
A Northern Bank survey of agri-businesses has revealed a high level of succession and followed a survey of 365 farmers and agri-business owners, which was commissioned by the bank and conducted at this year's Royal Ulster Agricultural Society Balmoral Show.
It reported that almost three quarters (74%) of respondents indicated that succession by a family member was likely, with a further 14% saying that this was possible and only 12% saying that they will not be succeeded.
Northern Bank Chief Economist Angela McGowan (pictured) said: "Agriculture remains at the heart of the Northern Ireland economy and is key to the survival of rural communities.
"As one of the few sectors to have seen continued growth throughout the economic downturn, agriculture is forecast to be one of the best performers this year and will be key to the economic success of Northern Ireland in the coming years, so Northern Bank's commitment to the industry will be stronger than ever."
Commenting on the results, Head of Agriculture John Henning, said: "It is encouraging to note that the majority of those surveyed predict succession in their agri-business, with only a very small percentage indicating that this will not be the case.
"Although the continued growth of the agricultural sector Northern Ireland may be a factor in this, such high levels of succession can be attributed to the current lack of career options elsewhere that has come with the recession, meaning that taking over the family farm or agri-business is a serious option for the next generations."
Other traditional issues covered means of payment and found that over half (52%) of those surveyed named the cheque as their preferred method of payment for expenses such as feed and fertiliser, while 29% favoured credit or debit card and 12% still prefer to pay in cash.
"As expected, the survey results reveal a heavy reliance on cheques - particularly among those over 45 years of age, who formed almost 80 per cent of the response," continued Mr Henning.
"Northern Bank is strongly committed to facilitating business modernisation for our customers, including the use of alternative payment solutions, so it is positive to note that when asked if the proposed industry changes to the use of cheques would cause difficulty in managing incoming and outgoing payments, 40% of the total 365 respondents said that it wouldn't, and a further 30% said that they could get used to other methods of payments."
Challenges
When asked to name the greatest challenge facing the agricultural industry in Northern Ireland in the coming years, one third (33%) said the Common Agricultural Policy (CAP) Reform, while 18% predicted global commodity prices and 18% said supermarket power would be a challenge.
Sixteen per cent, meanwhile, reported lack of working capital to be a likely challenge and the remaining 15% said competitive pricing.
"The prominence of CAP Reform in the results is no surprise," said Mr Henning. "When asked about the funding of the CAP budget after the 2013 Reform, an overwhelming 80% were not confident or unsure that adequate funding would be allocated."
Further to this, the survey also reveals high levels of concern around the review of the Single Farm Payment (SFP) - with 68% saying they were concerned or very concerned and a 25% remaining unsure.
"As the debate around the CAP continues, the support of the banks in Northern Ireland will be even more crucial and, with over half of Northern Ireland's farmers banking with Northern Bank, our commitment to the agriculture sector is unrivalled," he explained.
(BMcC/GK)
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