Call for banks to help farmers who need credit

THE banks have been urged to facilitate farmers who need credit lifelines to give them the cash flow necessary to run their business.

Macra na Feirme, which made the call, said farmers on the ground are having difficulty in securing both short and medium term credit facilities.

It warned that restriction to credit lines will hinder day-to-day farm business transactions and is effecting the survival of many farmers.

Macra’s agriculturalaffairs committee chairman Kieran McEvoy said credit is vital for the normal annual business such as loans for stocking, seed and fertiliser.

Farmers have supported banks and institutions over the years and have had good business relationships with them in the past, he said.

Meanwhile, Irish Cattle and Sheep Farmers’ Association suckler committee chairman Brendan McLaughlin is urging farmers to talk to their banks if they are finding themselves in a toughfinancial position.

“Many farmers have maximised their overdrafts and are wondering how to make loan repayments due this autumn.

“In many cases, they owe substantial sums to major creditors such as contractors, merchants, leasing companies and vets. Most of these farmers are in dire straits wondering how to balance the books,” he said.

Mr McLaughlin advised these farmers to meet with their banks.

If they present a clear and workable financial plan for the next few months, banks would generally be accommodating in extending credit facilities, he said.

“Unlike some property developers, farmers don’t run away from their responsibilities and in almost all cases, they have assets way in excess of any borrowing requirements.

“A better flow of available credit will ease financial pressures and provide a much needed boost to the livestock sector,” said Mr McLaughlin.