Main ‘agri’ banks seek to reassure farmers struggling amid fodder crisis
AIB has urged any farmers facing weather-related cashflow difficulties to contact their local branch. Bank of Ireland and Ulster Bank have also adopted similar lines. However, no bank has rolled out a special ‘fodder crisis’ product offering a set low interest rate.
AIB agri strategy manager Anne Finnegan said: “We don’t have any new deal as such, but we will talk to farmers on an individual basis to get an understanding their unique situation. That might mean extra working capital, or interest-only repayments on a loan, depending on their circumstances.”
Ulster Bank has topped up the €15m weather fund it launched in Sept 2012. It says farmers can borrow from this fund and repay either monthly or in a lump sum.
An Ulster Bank spokesperson said: “We encourage any farmer who is experiencing cash flow difficulties to sit down and prepare a cash flow budget for the next 12 to 18 months. There are a number of bodies including Teagasc, ACA, etc who can provide assistance in preparing a cashflow budget. The farmer should then meet their local branch manager to work out a solution.”
Bank of Ireland is offering a similar access to credit to help farmers make their way through the fodder crisis.
Senior bank executives have met with Agriculture Minister Simon Coveney, and leaders of the IFA, ICMSA, ICSA and other farm groups to discuss their credit facilities. The minister has also highlighted credit-free fodder facilities being offered by co-ops, many of which have also imported extra large quantities of fodder to relieve pressure.
IFA farm business committee chairman Tom Doyle said the IFA has asked banks to convert any high-cost credit farmers may have in place with merchants into a more sustainable bank loan.
ICSA president Gabriel Gilmartin said: “The banks are willing to engage with farmers in order to tide them over. I would advise farmers who need short-term credit to buy feed for their cattle to contact their local branch without delay. Any farmer experiencing difficulty in securing credit from their bank should contact ICSA. We must all do what we can, including the banks for whom farmers have been steady, loyal customers.”
ICSA has also put out an appeal for fodder from its membership, and it will put anyone with surplus fodder to sell in contact with farmers who need it.
