Cavan agri-contractor winds down services due to 'skyrocketing' costs
An agricultural business in Shercock, Co. Cavan, is winding down its agri-contracting services, citing rising costs as a key reason.
Cormac McBreen told Agriland: “I’m shutting down the agri-contracting side. It’s this simple – it’s not sustainable.
“The diesel is the straw that broke the camel’s back.”
He said that cost is the main issue with increases "across the board”.
He added: “Every bit of machinery is up. A tractor that was €95,000 in 2019 is now €175,000. A fusion baler has jumped from €65,000 10 years ago to over €100,000. Silage harvesters have gone up.
"Everything is skyrocketing.”
On the subject of fuel supports, he said: “The package deal – the 2.5 cent plus VAT – that was one of the first cuts. And then the one last week was – I’m still speechless – 5 cent off agri-diesel."
Referring to the government, he said: “In my opinion, they may start buying tractors because I don’t know who’ll do the jobs for the farmers on the ground.”
McBreen also posted a statement on social media outlining his experience with the business.
He said: “After hearing of the .025 cent off green diesel from our government and weighing things up we have decided to halt the agri-contracting services as of midnight tonight (April 13).
“For starters my mental health cannot take it.”
Protest
McBreen took part in the fuel protest last week, which saw several vehicles blocking roads across the country.
He said: “It was organised as a peaceful protest."
“No one knew what to expect.
He outlined how a convoy of "80 or 90 tractors and cars and jeeps" left Ardee for O’Connell Street.
“We protested around O’Connell Bridge. It was a good atmosphere and very peaceful," McBreen said.
“The gardaí were top class on O’Connell Bridge and they all had our back.”
McBreen went on to say that "it's a cost of living crisis – when you break it down.
"It is a crisis, and anyone who wants to bury their heads in the sand is in for a rude awakening in a short time.”
Economy
McBreen set up his business with his brother in 2017. He also has a farm, and a separate construction labour-related business based in Dublin.
He said: “Due to the current climate, I’d be scared we're heading into recession.
“There will be an agri-sector recession – there’s no way it’ll be reversed.
“Come back to me in a year and tell me I was wrong.”
McBreen cited some causes of economic difficulty for the industry, including “the price of tractors, insurance, diesel, labour, all plastics, fertiliser, and meal”.
He continued: “I was talking to a contractor owed half a million by farmers.
“I’m carrying €100,000 of debt from last year. Farmers are struggling to pay.”
McBreen said he is streamlining his business; closing the agri-contracting part, and reallocating some staff to work on his farm and quarry work.
“I’m battening down the hatches and hoping we get through a recession. And I’ll try to keep staff in work for as long as possible," he added.
