Managing Farm Debt
Managing Farm Debt
Farm debt can take many forms such as bank loans, hire purchase, co-op or merchant credit, personal loans and general creditors. Many younger farmers may also have a house mortgage. How the total farm debt is managed can have a major bearing on farm cash flow and overall farm profitability. In the current credit squeeze climate, bank credit may not be as freely available as previously and farmers will have to apply greater diligence to managing their finances in order to preserve cash flow and profitability. Good debt management will not alone save money but will also bring peace of mind. Avoiding costly credit, if at all possible, is the first step in good debt management. Table 5.1 gives an indication of the cost of various types of credit
Managing Farm Debt
Farm debt can take many forms such as bank loans, hire purchase, co-op or merchant credit, personal loans and general creditors. Many younger farmers may also have a house mortgage. How the total farm debt is managed can have a major bearing on farm cash flow and overall farm profitability. In the current credit squeeze climate, bank credit may not be as freely available as previously and farmers will have to apply greater diligence to managing their finances in order to preserve cash flow and profitability. Good debt management will not alone save money but will also bring peace of mind. Avoiding costly credit, if at all possible, is the first step in good debt management. Table 5.1 gives an indication of the cost of various types of credit
Table 5.1 Cost of different types of credit
Credit Type Typical Interest Charge (new loans) Typical Repayment Term
Bank Term Loan 5-7% 5-20 years
Bank Overdraft 8-10% -
Hire Purchase 6-8% 3-7 years
Stocking / Seasonal Loans 4-8% 1 year
Leasing 6-8% 3-7 years
Credit Union 8-10% 1-5 years
House Mortgage 2.25-2.85% 20-30 years
(1st time buyer)
House Mortgage 3.6-4.2% 20-30 years
(non 1st time buyer)
Merchant / Co-op Credit 12-14% -
Credit Card 12-18% -
Bank Borrowings
Typically bank borrowings will consist of a working overdraft, a stocking loan and/or one or more term loans. Having your accountant do a regular health check on the structure of your bank borrowings may be save you a considerable amount of money.
Overdrafts
An overdraft facility, if not properly managed can be a very costly form of finance both in terms of interest charges (typically 4-5% above term loan rates) and also in terms of bank charges, particularly where the overdraft limit is regularly or persistently in excess of its permitted limit. Table 5.2 provides two examples comparing (A) an account with a permission of €25,000 that has stayed within its permission and has had an average balance of €10,000 overdrawn, and (B), an account with a permission of €25,000 that has not stayed within its permission and has had an average balance of €26,000 overdrawn, with 50 cheques being presented for payment while the account was in excess of its limit. Both accounts had 180 paper transactions and 60 automated transactions in the year.
Table 5.2 Annual cost of poor management of a current account
Interest Bank Charges Referral charges Total
Example A 984 90 1,074
Example B 2,909 90 258 3,257
It is apparent that a poorly managed current account can prove very costly even where the average balance is relatively modest The good management rules of a current account can be summarised as follows:
Overdraft facilities are purely for the purpose of dealing with the seasonality of income and expenditure
Overdrafts should never exceed the permitted limit
Overdrafts are a costly form of finance
Overdrafts should not be regarded as medium term or long term finance.
Term Loans
Term loans are the cheapest form of finance. However, banks won’t necessarily offer the best available rate if not pressed to do so; be prepared to negotiate. Banks will look for security, generally where total borrowings are in excess of €20,000 – this will vary from customer to customer. Where banks are seeking security for the first time they will now require a legal charge on some or all of your property.
Table 5.3 Term Loan Repayments
Annual loan repayments per €1,000 borrowed
Term in Years Interest Rates
5% 6% 7%
5 228 234 240
7 168 175 182
10 128 134 140
15 96 102 108
20 80 87 94
Previously, lodging your deeds with the bank (known as “verbal deposit”) sufficed and incurred no cost. Acquiring a legal charge will incur legal fees, typically in the region of €1,000. Always seek to repay the loan over the longest available term. Shortening the repayment term will never prove a problem but lengthening the term may not be quiet as easy. Refer to Chart 7 on page 24 to get an indication of the half yearly repayment rates per €1,000 borrowed for a range of loan terms and interest rates.
Hire Purchase and finance Leases
Hire Purchase and Finance Leases differ from Term Loan finance in a number of ways as follows:
The asset being financed will satisfy the security requirements
The Interest rate is always fixed and will not change during the life of the loan
Repayments quoted by various lenders can vary significantly, always shop around
All of the interest is applied at the outset and early termination may prove costly
Finance Leases differ from Hire Purchase in a number of ways:
Lease agreements will not end at the end of the primary repayment term. You will be given an option to continue with a secondary lease or you can buy out the item. Either option will generally involve additional cost.
Lease payments are fully allowable against income tax whereby the entire cost is written off over the primary term of the lease. However, the end of the lease will trigger a clawback of relief equivalent to the deemed market value of the item at that time. Entering into a secondary lease period will defer this problem but generally at a cost.
Items financed on hire purchase are written off against income tax at 12.5% per annum and there are no complications at the end of the term.
Where items financed on hire purchase are traded in for an amount that represents a profit on its value for tax purposes, this profit can be rolled over on to the replacement item. Such a concession does not apply to disposals of leased items
Repayment terms quoted on lease or hire purchase finance can vary significantly. Never accept quotes from any source without first checking with your accountant. Table 5.4 gives an indication of what repayments should be on either lease of HP finance at competitive rates.
Table 5.4 Monthly Repayments per €1,000 financed
Monthly repayments per €1,000 financed
Term in Years Interest Rate (APR)
5% 6% 7%
3 29.97 30.41 30.88
5 18.86 19.33 19.81
7 14.13 14.60 15.09
Merchant or Co-op Credit
Merchant and Co-op credit is likely to be the most expensive form of credit that farmers avail of. Additionally, items purchased on account are often charged at a credit price which will be significantly higher than the best cash price. Where possible avoid any form of credit. Talk to you bank about a seasonal loan which will usually be at a very competitive interest rate and will enable you to shop around and get the best possible price on your inputs.
The Do’S and don’ts of managing farm debt
Sensible, organised and timely debt management will avoid worry, stress and making bad farming decisions. It may also ensure that you maintain a good credit rating which could prove to be vital for your business in the years ahead. The following is a list of do’s and don’ts that, if observed, may avoid many sleepless nights.
Do’s
Take early intervention – seek advice as soon as see a problem emerging
Face up to your debt problem – ignoring it won’t make it go away
Inform and involve your spouse – a problem shared is a problem halved, they will not thank you for not involving them
Understand your problem – produce prices may not be the primary reason why you have a dent problem
Take independent advice – not from the representative of the bank or co-op to whom you owe the debt
Have up to date farm accounts – a meaningful and timely proposal to the bank will be useless without up to date accounts
Take a minimum of a 3 year view – short term plans will yield short term solutions
Be up front with your banker – make him aware of essential expenditure likely to arise in the short to medium term
Don’ts
Don’t accept the suggested remedies of the bank or co-op without seeking independent advice
Don’t talk to the bank without first having a well thought out and professionally appraised set of proposals
Don’t sign any document without seeking independent advice on what you are signing and the rate of interest being charged.
Don’t sign up for an interest only facility without fully familiarising yourself with the terms, such as the length of the interest only period, the amount of the full repayment when it starts and the consequences of failing to meet the full repayment
Don’t ignore correspondence from your banks and creditors – maintaining a good credit rating is vitally important
Employing Farm Labour
Deciding to employ a farm worker is not as simple a matter as it might have been in previous generations. There are two principal areas that a farmer should be aware of before a decision is made, these are:
The true cost of employing a farm worker
The obligations placed upon the employer and the workers’ rights
AGRICULTURAL WAGES AND
CONDITIONS OF EMPLOYMENT
Agricultural workers’ remuneration and conditions of employment are set down by way of an Employment Regulation Order by the Agricultural Workers Joint Labour Committee. The order covers workers in agriculture, horticulture and forestry but does not cover persons working in the mushroom growing industry, grooms or domestic workers in farm households whose wages and conditions of employment are governed by a Registered Employment Agreement.
Statutory Minimum Remuneration
The following rates are effective from 14th. July 2009:
Table 5.5: Minimum agricultural workers wage based on a 39 hour week
Age of Worker Per Week Per Hour
Experienced adult worker €363.87 €9.33
Under age 18 €254.28 €6.52
Job entrants
First year after first employment over 18 €290.94 €7.46
Second year after first employment over 18 €326.82 €8.38
Workers in structured training
First 1/3 period (not exceeding 12 months) €272.61 €6.99
Second 1/3 period (not exceeding 12 months) €290.94 €7.46
Third 1/3 period (not exceeding 12 months) €326.82 €8.28
Working Hours
The normal number of hours to be worked is 39. The 39-hour week may be implemented in any of the following ways, depending on the needs of the business:
A 39 hour week on a year-round basis
38 hours for 6 consecutive months
40 hours for 6 consecutive months
36 hours for 3 consecutive months
40 hours for nine consecutive months
Normal pay should not vary in relation to hours worked in the shorter/longer periods, but will be paid as though a 39-hour week was worked. Where hours worked (including overtime) exceeds 48 per week, the total number of hours in any seven day period must not exceed 48, averaged over a period of six months. The months of the averaging period must be consecutive, but the employer may choose which six months they will be.
Short day
Only a half day shall be worked on Saturdays unless the contract of employment provides otherwise, or 24 hours notice of a requirement to work after 1.00 p.m. on Saturday is given to the worker by the employer.
Overtime rates
The following are the arrangements that apply after normal working hours have been worked:
For all time worked in excess of the normal hours of work on any day other than a Sunday, and including after 1.00 p.m. on the short day, the minimum time rate is time and one third.
For all time worked on Public Holidays, the minimum time-rate is time x 2.
For all time worked on Sundays, the minimum rate is time and two thirds.
Benefits and Advantages
If a worker receives board and lodgings, board only or lodgings only from his employer, the following amounts may be deducted from his pay:
€54.13 for full board and lodgings per week (7 day week) or €7.73 per day
€32.14 for full board only per week (7 day week) or €4.60 per day
€21.85 for lodgings only per week (7 day week) or €3.14 per day
Note: The amounts as set out above are the Statutory Minimum Rates as per the Employment Regulation Order (Agricultural Workers Joint Labour Committee) 2008. They are not necessarily a reflection of current market wage and benefit cost.
Holidays
The leave year is the year commencing 1 April and ending 31 March. and holiday entitlements are calculated by one of the following methods:
4 working weeks in the leave year in which the worker works at least 1,365 hours (unless it is a leave year in which the worker changed employment);
1/3 of a working week per calendar month that the worker works at least 117 hours;
8% of the hours worked in a year, subject to a maximum of 4 working weeks.
Where a worker falls ill during annual leave and furnishes to his employer a medical certificate in respect of the illness, the days to which the certificate refers shall not be regarded as annual leave. The annual leave of a worker who has 8 or more months of service shall include an unbroken period of two weeks.
Short time and Part time workers
Holiday entitlements are calculated in the same manner as set out above for full time employees. Entitlement to public holidays leave shall only apply where the worker has worked for at least 40 hours in the 5 weeks before the public holiday
Children
While the employment of children under 16 is generally prohibited by the Protection of Young Persons (Employment) Act 1996, a child over 14 years may be permitted to do light work during school holidays provided it is not harmful to health, development or schooling. A child over 15 may also do such work for up to 8 hours a week during school term. An employer wishing to employ anyone under 18 must first require the production of their birth certificate. Before employing a child under 16 the employer must also get written permission from the parents or guardian. The Act further provides for the setting of limits to the working hours of young people (i.e. 16 and 17 year olds), provides for rest intervals and prohibits night work. As regards working hours, young people (16 and 17 year olds) may not work for more than 8 hours in any day or 40 hours in any week. Employers who employ young people under 18 years of age must display a summary of the Act (available in poster form from the Department of Enterprise, Trade & Employment)), and also give a summary of the Act to the employee within 1 month of the commencement of employment.
EMPLOYER’S OBLIGATIONS AND WORKER’S RIGHTS
An employer has certain obligations which he owes to his employee. The employee also has certain rights which he is legally entitled to and there is a substantial body of legislation in place to protect the worker’s rights.
REGISTERING EMPLOYEES
All employees earning more than seven €7.60 a week must be registered under the PAYE system. Failure to do will cause problems for both the employer and employee.
Penalties
The penalty for paying less than the statutory minimum agricultural wage is a fine not exceeding €952 for each offence.
REDUNDANCY
An employee who is employed for two continuous years or more is entitled to statutory redundancy amounting to two week’s pay for each year of continuous service between the ages of sixteen and sixty six (a week’s pay is subject to a ceiling of €600) plus one further week’s pay. A weeks pay is calculated by adding together Gross Weekly Wage, Average Regular Overtime and Benefits in Kind. Employers are entitled to a rebate of 60% of statutory redundancy paid provided they observe certain conditions as follows:
The requisite two weeks notice must be given to the employee on the prescribed form R.P.50 Part A. A copy of this notice must be sent to the Department of Enterprise, Trade and Employment at the same time.
When dismissal actually takes place, the employee must be given a Redundancy Certificate (form RP50 Part B).
The actual claim by the employer for the 60% rebate should be made to the Department of Enterprise, Trade and Employment on form RP50 accompanied by copies of the Redundancy Certificate.
Forms referred to above are available from the Department of Enterprise, Trade and Employment (also available on website – www.entemp.ie).
DISMISSAL NOTICE
An employee who is in continuous employment for sixteen weeks or more is entitled to certain minimum notice in the event of dismissal as follows:
Table 5.6: Minimum dismissal noticesLength of Service Minimum Notice
Thirteen weeks to two years One week
Two years to five years Two weeks
Five years to ten years Four weeks
Ten years to fifteen years Six weeks
More than fifteen years Eight weeks
UNFAIR DISMISSAL
An employee who works for eight hours per week or more and is employed for a year or more is entitled to claim unfair dismissal if he should be so dismissed or should the conditions of work be made so difficult that he or she feels obliged to leave. Dismissal must be justified on grounds of one or more of the following causes:
the capability, competence or qualifications of the employee
the redundancy of the employee
the fact that continuation of the employment would contravene another statutory requirement
that there were other substantial grounds for dismissal
Should unfair dismissal be proven the employer will have to:
reinstate the person in their old job,
or
reinstate them in an alternative job that the adjudicating bodies consider reasonable,
or
provide financial compensation to a maximum of two years’ pay
An employee found to have been unfairly dismissed but who has suffered no financial loss, i.e. found suitable alternative employment, may be awarded up to four weeks’ pay.
farm relief services
Farm Relief Services now have over 20,000 customer farmers and over 3,000 operators supplying a wide range of services.
Annual Fees
Farmers pay an annual registration fee of €45 – €60 and then pay for each individual service as they use it.
Charge out rates
Rates will vary between the different FRS areas and the following charges are those as charged in 2009 by the Kilkenny, Carlow and District Farm Relief Services Ltd.
Table: 5.7 Farm Relief Charges (including VAT)
Relief Milking* Single morning or evening €35 – minimum two hours.
Daily Milking €70 – miinimum four hours.
Sunday single €40 – Sunday daily €80 (minimum four hours)
Dairy Relief Work €11.86 to €14.60.per hour.
General Farm Relief Work €12.93 to €15.93 per hour. including work for agricultural contractors.
Hoof Care €45,1st. hour, €35 per hour thereafter.
Calf Dehorning €20 minimum charge, €3 per head thereafter.
Sheep Scanning €43 per call charge plus €0.57 per ewe thereafter. (quotations for large numbers).
Cow Scanning €50 for first six cows and €3 per cow thereafter.
Freeze branding Two digits-€51 for first ten animals, €5.30 /hd thereafter. Three digits-€60 for first ten animals, €6.25/hd. thereafter.
Other services Quotation on request
*Sundays and Bank Holidays are charged at the normal rate plus 25%.
Health & Safety
National Co-Op FRS have employed a national health & safety officer and are promoting a number of safety initiatives including:
A safety statement service where trained personnel will go out to the farm, carry out a detailed survey and prepare the safety statement for the farm
Tractor driving skills course aimed at 14 – 16 year olds
Health and safety training for all FRS operators
Health and safety training for other bodies and organisations
Recycling services
Various E.U. and Government directives require that farm plastics are recovered for recycling. Farm Relief Services offer a collection service which involves the farmer segregating and storing waste plastics in the following categories:
Silage covers and bale wrap and feed and fertiliser bags
Bulk feed, seed and fertiliser bags
Drums and containers
Net wrap and plastic string
The waste is stored in large bins which have removable bags (liners). Liners cost approx. €6 each while collection cost is €60. A bin costs €395.
Farmer accident & sickness scheme
This scheme is available to farmers under 65 years subject to acceptance to the insurers. There is no medical required and benefits start after the first seven days and will run for up to 51 weeks. The annual premium is €395,
Local FRS Offices
Clare Ph.065 6820275 Mid & West Cork Ph: 023 52630
CLW Ph.(Cavan) 049 8545100 Mogeely/Seandun Ph: 021-4613501
Donegal Ph: 074-9145386 Monaghan Ph: 042-9741288
Duhallow Ph: 029-50750 Roscommon Ph: 079-9662781
Galway Ph: 091-844551 South Midlands Ph: 0505-21166
Kerry Ph:066-7141099 South Tipperary Ph:052-41598
Kilkenny, Carlow Ph: 056-7761671 Waterford 051 – 294277
Limerick/North Cork Ph: 063-90666 Wexford Ph: 053-9236222
Mallow Ph: 022-23230 Wicklow FRS, Ph: 0402-38427
FARM SAFETY
The object of health and safety law is to reduce human suffering and losses, due to accidents and ill health at work. The benefits which will accrue from complying with the law far outweigh the effort involved. It is difficult to quantify the degree of suffering and hardship that the victims of these accidents and their families endure, much of which could be avoided by safe farm layouts and proper work practices. Under the Safety, Health and Welfare at Work Act 2005 and Regulations made under that Act, the law requires a farmer to provide, insofar as is reasonably practicable,
a safe farm to work in.
safe tractors, machinery and equipment.
safe working practices.
prepare a Risk Assessment or if the farm has 3 or more employees prepare a Safety Statement.
report all farm accidents that cause absences of 3 or more days to the HSA.
Farming is one of the most dangerous occupations in Ireland. Over one third of all workplace fatalities in Ireland occur in farming. Children and the elderly are particularly at risk. 37% of all farm deaths now involve over 65s and 18% of fatalities are to children. 183 people have been killed on Irish farms in the last 10 years. About 1800 serious injuries occur every year. The following is a breakdown of the causes of farm accidents
Tractor/ Machinery related 49%
Livestock related 15%
Falls 12%
Drowning/ Suffocation 12%
Building collapse/falling items 4%
Electrocution 3%
Other 5%
CODE OF PRACTICE RISK ASSESSMENT DOCUMENT
Completing the Farm Safety Code of Practice, which was sent to all farmers, nationally in the final quarter of 2006, is central to complying with Safety, Health and Welfare at Work legislation. Just 41% of farmers have completed the Risk Assessment and the Health and Safety Authority announced in August 2009 that they plan to take enforcement action where this is not done. Teagasc provide short half-day training courses on this task and Agricultural Consultants also provide a service in this area.
FARM SAFETY CHECKLIST
(Tick box) Yes No Action required
TRACTORS & MACHINERY
Are all tractors mechanically safe to operate?
Are all controls in good working order ?
Are all PTO shafts/guards covered ?
LIVESTOCK
Do you have proper handling facilities ?
Does the bull have a ring and chain ?
Any hazards with livestock buildings ?
SLURRY
Are safety precautions taken when agitating ?
Are safety access manhole covers in place ?
Are overground tanks securely fenced ?
PESTICIDES & CHEMICALS
Are they stored and locked safely ?
Are protective gloves/facemasks available ?
BUILDINGS
Have you any swinging doors?
Are all ladders safe to use ?
TIDINESS/SIGNS
Is your yard and workshop tidy ?
Are warning signs displayed ?
ELECTRICAL
Has a competent electrician checked your
farm’s electric’s in the past 3 years ?
Is farmyard lighting satisfactory and adequate?
HEALTH & SAFETY REQUIREMENTS FOR CONSTRUCTION PROJECTS
Farmers who build a cattle shed or a milking parlour or who build a house for sale, letting or keeping guests are defined by the Health & Safety Authority as a “client” which means that you have certain legal obligations to conform with.
REGULATIONS THAT APPLY
The regulations under the Safety, Health and Welfare at Work Construction Regulations 2006 apply to most construction projects. They apply whether you are doing the work yourself or having somebody do it for you. They apply to small and large projects. As a “client” you must;
Appoint, in writing, a competent Project Supervisor for the Design Process (PSDP) before design work starts
Appoint, in writing, a competent Project Supervisor for the Construction Stage (PSCS) before construction begins
Be satisfied that each designer and contractor appointed has adequate training, knowledge, experience, and resources for the work to be performed
Co-operate with the Project Supervisor and supply necessary information
Retain and make available the Safety File for the completed structure
Provide a copy of the safety and health plan prepared by the PSDP to every person tendering for the project
Notify the Authority of the appointment of the PSDP where construction is likely to take more than 500 person days or 30 working days (see form AF1)
Allow a reasonable amount of time for project completion
APPOINTING A PROJECT SUPERVISOR
You must appoint in writing a competent Project Supervisors for the Design Process (PSDP) before design work starts and a competent Project Supervisor for the Construction Stage (PSCS) before construction work starts, in order to co-ordinate the design and construction. They must acknowledge in writing that they accept the appointment. There can only be one PSCS for one project at a given time. You do not have to appoint Project Supervisors if the work is routine maintenance work such as cleaning, decorating, and repair and there is only one contractor involved and the project does not last longer than 30 days or 500 person days and the work does not involve a particular risk.
PERSONS WHO CAN ACT AS A PROJECT SUPERVISOR
When making the appointments of Project Supervisors, you must satisfy yourself that those appointed are competent to carry out the duties under the Regulations. You as a Client will need to make reasonable inquires to check that the person or company is competent and at least satisfies the following:
Membership of professional bodies;
Knowledge of design and construction, particularly in relation to the nature of the project;
Safety and Health qualifications, training (e.g. degree, diploma, certificate, continua professional development);
Safety and Health experience on similar projects. (e.g. knowledge of preparing a Safety File).
Sufficient staff with qualifications, training and experience, both within the company and from other sources, relevant to the project;
Evidence of a functioning safety management system.
Evidence of Regulatory Compliance.
THE ROLE OF THE PROJECT SUPERVISORS
The Project Supervisors Design Process must:
Identify hazards arising from the design or from the technical, organisational, planning, or time related aspects of the project; where possible, eliminate the hazards or reduce the risk.
Communicate necessary control measures, design assumptions, or remaining risks to the PSCS so they can be dealt with in the Safety and Health Plan;
Ensure that the work of designers is co-ordinated to ensure safety, organise co-operation between designers.
Prepare a written safety and health plan for any project where construction will take more than 500 person days or 30 working days or there is a Particular Risk and deliver it to the client prior to tender.
Prepare a safety file for the completed structure and give it to the client;
Notify the Authority and client of non-compliance with any written directions issued.
The Project Supervisor Construction Stage must:
Co-ordinate the implementation of the construction regulations by contractors.
Organise co-operation between contractors and the provision of information.
Co-ordinate the reporting of accidents to the Authority (i.e. Health & Safety Authority)
Notify the Authority before construction commences where construction is likely to take more than 500 person days or 30 working days;
Provide information to the site safety representative;
Co-ordinate the checking of safe working procedures;
Co-ordinate measures to restrict entry on to the site;
Co-ordinate the provision and maintenance of welfare facilities;
Co-ordinate arrangements to ensure that craft, general construction workers, and security workers have a Safety Awareness card, e.g. Safe Pass and a Construction Skills card where required.
Co-ordinate the appointment of a site safety representative
Provide all necessary safety file information to the PSDP;
Monitor the compliance of contractors and others and take corrective action where necessary.
Notify the Authority and the client of non-compliance with any written directions issued.
THE SAFETY AND HEALTH PLAN
The client must make sure that every person being considered or tendering for the role of Project Supervisor for the Construction Stage gets a copy of the safety and health plan. Its purpose is to “flag up” at an early stage, any safety and health issues specific to that project.
THE SAFETY FILE
The Safety File is a key document intended for the safety of end users of the structure or those who will extend or maintain the structure in future. The PSDP must prepare and pass the Safety File to the Client at completion, you as the Client must make the Safety File available, if necessary, e.g. to subsequent designers or contractors engaged in maintenance or renovation of the structure, or pass it on to any new owner of the built structure. If you as a client sell or otherwise dispose of your interest in the structure, then you must pass on the Safety File to the new owner. Where you dispose of his or her interest in part of a structure or development then you must pass on the relevant section of the Safety File for the relevant part. The person receiving the Safety File must keep it available for inspection.
FURTHER INFORMATION
Further information including the Guidelines to the Safety Health and Welfare at Work (Construction) Regulations are available at www.hsa.ie
COMPUTERISATION ON THE FARM
Recent years have seen certain trends emerge in the Irish market for farm IT. Farm IT is now viewed as a management tool rather than just a compliancy aid. Another change is that DIY spreadsheets are being replaced specialised farm packages. This has led to increased demand for on-line facilities in packages.
Farm IT for farm management
This is not totally new – the more progressive farmers have been using PC packages for herd & crop management for twenty years or more. However in the 90′s, compliancy issues such as Bovine Registers & Calf Registration came to the fore. These are still relevant aspects of integrated farm software packages but they have been superseded as the main IT drivers by issues such as herd & grass management and financial cost control (farm accounts). Though they are no longer the main reasons for farmers getting involved in IT, it is vital that the current arrangements whereby farmers can comply with Department. regulations via their farm software packages remain in place. This means for example that when a farmer records a calving on his package, his computerised Blue Book is updated and his calf registration is automatically emailed to the Department. At the moment almost 10 % of calves are registered in this way – mostly from the larger dairy & suckler herds.
Specialised farm packages vs. DIY spreadsheets
The cost of commercial farm software is dropping steadily. Most such packages can now be had for annual fees ranging from €100 to €200 per year. A big advantage of commercial farm software is its ability to integrate different sets of farm data (e.g. herd, field and accounts data) into one database for analysis purposes. So a farmer can use service dates from the herd part of his program to predict when cows start grazing and have this ‘feed’ into the grass budgeting facility on the same program. Similarly computerised Bovine Register data can be used for generating organic nitrates predictions, livestock inventories for accountants and even incorporated into farm Balance Sheets.
On-line Farm Packages
With the spread of broad band into rural areas the software supplier can log on to the farmer’s PC’s to fix technical problems that may arise. It means that new versions of their software can be downloaded in minutes or even seconds from the internet. It also means that backing up farm data can be achieved by a simple click of a key that can send the data safely to a remote server (main-frame computer). It also means that farmers can allow easy access to their data by their chosen adviser or consultant. It means that selected aspects of their data can be made available to fellow members of discussion groups.
Themocracy