Banks still see dairy as safe bet for 100% loans
At the National Dairy Show in Millstreet last Saturday, Donal Whelton, AIB agri-adviser confirmed his bank is lending the full cost of farm development or land purchase to top farmers.
But he dispelled fears that farming could be the next over-borrowed boom and bust area, by explaining that loans taken out by Irish farmers equal only about 5% of the value of their assets — in sharp contrast to some other EU member states where average farmer borrowing equals 50% of assets.
Farmers were also advised at the show to get their existing operations to full efficiency before embarking on expansion to take advantage of the lifting of the EU milk quota barrier in 2015, and to fully stress-test their plans before borrowing.
One of the farmers ready for growth in 2015 is Patrick Frawley of Rathkeale, Co Limerick — but he will have the help of extra cash flow, after winning the Irish Examiner National Dairy Show Supreme Championship last Saturday for the second year in a row.
The top quality cattle which Patrick and his son Derrick raise are attracting overseas attention, with 13 of the 32 animals in their recent sale going to Wales and Northern Ireland.
Thousands of farmers were welcomed to the show in Millstreet by the first woman to officially open the event in its 31-year history — Mairead McGuinness, Fine Gael MEP for Ireland East.
She revealed that the Canadian prime minister has promised to compensate his country’s dairy farmers for any adverse impact from the trade deal announced with the EU — but there has been no such promise to EU beef and pork farmers who have concerns over the deal.
The way has been opened for the export of 30,000 tonnes of specialised EU cheeses to Canada, and the importation of 45,000 tonnes of beef and 75,000 tonnes of pork meat from Canada into the EU, starting in 2015.
Ms McGuinness said when the European Commission comes to the parliament seeking approval for the deal, she will ask if officials exceeded redline limits on access for Canadian meat exports, and if they should have achieved greater access for EU cheese exports.
She said Agriculture Commissioner Dacian Ciolos has acknowledged the fears of EU beef and pork producers, and she will look for assurances that the deal will not hurt EU farmers.
