Walshe says farmers must not pay for grant changes

IFA PRESIDENT Padraig Walshe has demanded that no farmer who undertook a Farm Waste Management Scheme contract in good faith loses out as a result of the Government decision to stagger grant payments from the scheme.

“The 40:40:20 option is fast becoming a non-runner, as banks are now putting pressure on hard-pressed farmers for money.” He said some farmers were being called in by bank managers and told they will have to take out three-year loans to fund the shortfall.

Mr Walshe has pointed out that farmers have spent more than e1.2 billion of their own money in improving their farmyards. He said they have up to e500m of bridging finance, which is costing them between e2.5m and e3.1m per month. “In the case of a farmer owed e50,000 in grant aid, bridging finance is costing from e250/month up to e310/month, for every month the grant is delayed.”

The IFA president said farmers can now go to their local Department offices to get their invoices, needed to reclaim about e100m in VAT refunds for farmyard work.

Macra na Feirme national president Catherine Buckley said some farmers opted for more temporary credit arrangements on the understanding that grant payments would be made within 14 weeks of works being completed and receipts returned. “This puts farmers under increased financial pressure with high interest payments and magnifies the already difficult credit issues faced by some farmers who are approaching banks for credit for seasonal inputs,” she said.

She said farmers used a range of financial options to complete building works, including overdraft facilities, fixed term loans or drawings from personal savings.

“Young farmers who are trying to grow and develop their business are being totally disillusioned by Government breaking its promises on schemes,” she said.

Ireland East MEP Mairead McGuinness said she has heard from farmers who are experiencing tough negotiations with banks on overdraft and loan facilities. “Several have told me that their banks have slashed their overdraft facilities and that they are experiencing real difficulties in negotiating credit.”

Senator Cecilia Keaveney Fianna Fáil had called on banks to absorb the losses until such time as the Government presents the cheques due.