Young farmers urged to be cautious about taking out loans
Minister of State, Tom Hayes, who issued the advice, was speaking in Bantry, Co Cork, at the presentation of the FBD Young Farmer of the Year awards.
The awards, run by Macra na Feirme in association with the Irish Farmers Association, are an annual highlight of the farming calendar.
Mr Hayes said that there were huge opportunities and challenges in agriculture. However, one of the downsides related to bank borrowings and debt overload.
“Too many people in the past have gone down that road. Increasing your production, side by side with a lot of debt, does not give you more profit.
“We need to be careful. We need to be strategic in our thinking. And we need to be thorough and have sound advice when going to banks and borrowing money. “I think that is a message that needs to be sent to all sections of agriculture right across this country. Do not be afraid, but be cautious at all times,” he said.
Mr Hayes said that he was very conscious of the difficulty for farmers and in particular, young farmers in obtaining credit from the banking community. However, he said he was pleased that the main commercial banks had initiated a number of specific agri-food funds.
33-year old Sean O’Donnell from Ballina, Co Mayo, was named Young Farmer of the year for 2014.
