Concern over lack of information on off-farm investments, says IFA

THERE is considerable anxiety among some farmers over the lack of adequate information on off-farm investments, the Irish Farmers’ Association (IFA) claimed yesterday.

Deputy President Eddie Downey urged all promoters to ensure that people are kept fully informed of the status and performance of their investments.

“Some farmers who have contacted the IFA feel they have been kept in the dark and denied transparency, particularly where investments may have to be restructured,” he said.

Mr Downey said at a minimum full audited up-to-date annual accounts must be made available to investors including independent market valuations.

“Investors must always be provided, in writing and in advance, with full documentation on any proposed corporate restructuring of their investments.

“This documentation must include details of management and promoters’ fees, and clearly defined business plans,” he said.

Mr Downey said investors must always have the opportunity to seek their own independent advice on any such restructuring proposals.

“The reality is that the prospects for many investments have changed dramatically over the past two years.

“Promoters have a responsibility to be up-front and frank with investors, and costs such as management fees have to reflect the changed environment,” he said.

Mr Downey said with farm incomes under enormous pressure, farmers who have invested off-farm need to know from promoters exactly where they stand with these investments.