No winners in bank versus farmer combat, says IFA President Eddie Downey
He said, “The core principle on which negotiations must be based is that both sides contribute to the retention of a viable family farm enterprise, where at all possible.
“The banks must be fair in their dealings with farmers and not impose conditions that cannot be met by the farmer or that impose a long-term, unsustainable burden”.
Mr Downey said the banking environment has improved, but criticised “pillar” banks for taking excessive interest margins, when the cost of their funds is at an all-time low.
He said Irish taxpayers have paid huge sums in supporting the banks and it’s time they saw a dividend in the form of reduced interest rates and charges.
He said the farming sector has always had a strong repayment record, which was maintained throughout the downturn.
“However, a small number of farmers are not engaging realistically with their banks in finding solutions to their credit difficulties and, in doing so, are potentially undermining the borrowing credibility of the overall sector”.
“IFA will not stand over cases where there is no real engagement by the farmer with their bank, or where a deal has been agreed and is then not honoured.
“In the long run, there are no winners in these combative situations, with huge legal and other professional costs incurred”.
Mr Downey strongly advised farmers in such situations to engage with the banks and address their problems.
