IFA urges banks to make cashflow provisions as weather causes chaos

Banks must make cashflow provision for the extra costs and production losses on farms associated with the poor weather conditions this summer, IFA president John Bryan has said.

“Farmers across the country have had to re-house cattle and buy in extra feed. They will need extra working capital in the months ahead because of these weather-related problems, and the banks must facilitate their farming customers in overcoming the cashflow difficulties created by this situation,” he said.

In response, AIB has invited any farmers experiencing, or who anticipate, cash-flow difficulties caused by the weather to contact their branch. AIB head of business banking John Webb said the bank “is anxious to do what it can to assist its agri-customers”.

Mr Bryan acknowledged that AIB has already asked its customers to contact them and urged the other banks to follow suit.

Meanwhile, Irish Cattle and Sheep Farmers’ Association president Gabriel Gilmartin has issued an appeal to farm inspectors to make allowances for the serious effect the current heavy rainfall is having on farms across the country.

“We are conscious that the department is obliged to carry out inspections, and as such, we understand that they cannot be cancelled or postponed. However, meeting the required standard under these weather conditions will be extremely difficult and I would really hope that the inspectors recognise this when they visit farms.”

He said poaching is at a serious level in many places. Many farmers have re-housed their cattle and land is too wet to spread slurry, which means their tanks are full. He said heavy crops of rushes are also problematic and could mean penalties in an inspection.