Farmers furious at grants decision

THERE was a furious farm lobby reaction last night to a Government decision to phase the payment of an estimated €550 million due to 17,000 farmers in waste management grants.

It was claimed the decision, announced in the Dáil by Agriculture Minister Brendan Smith, will deepen a cash-flow crisis on farms.

The grants for completed environmental works, which farmers were awaiting, will now be paid on a phased basis.

Mr Smith said 40% will be paid this year, as claims are approved, a further 40% in early January 2010 and the remaining 20% in January 2011.

This would ensure 80% of the cost of the outstanding grants will be paid within the next 10 months. It was a more equitable approach than paying only a portion of claimants in full, he said.

Mr Smith said, in recognition of the pressure that some farmers may be under for early payment of the grant, he had arranged to meet with the main banks today.

“I will be making strong representations to them to facilitate those farmers who are due their farm waste management grant, which the state is committed to paying in full,” he said.

However, Fine Gael spokesperson Michael Creed TD said it was time for the minister to consider his position as thousands of farmers were plunged into a cash-flow crisis.

“On a day when the Government plans to plough €7 billion into the banks it is incredible that the minister will deny farmers what they are owed,” he said.

Irish Creamery Milk Suppliers Association president Jackie Cahill said the Government had misled farmers and forced unnecessary and ruinous costs on them to an extent that will place thousands in extreme difficulties with their banks.

He said the Government must make arrangements with the banks to ensure the decision will not cost blameless farmers any interest or interfere in any way with their cash flow or borrowings.

Irish Cattle and Sheep Farmers Association president Malcolm Thompson said it was an absolute disgrace to expect farmers to wait until 2011 for full payment of the grants.

“At best it is a disaster in terms of additional interest costs. At worst, farmers who are unable to negotiate finance could face bankruptcy,” he said.

Sinn Féin’s Martin Ferris TD called on the Government to reverse the decision.