Farm Ireland

Saturday 17 March 2018

Farm bodies demand action on credit

Declan O'Brien

Declan O'Brien

farm organisations have cranked up the pressure on both the Government and financial regulatory authorities to act on the continuing credit squeeze.

ICMSA president Jackie Cahill met with Tánaiste Mary Coughlan and officials from the Department of Enterprise, Trade and Employment last week. Mr Cahill said he stressed the need for essential working capital for farmers, ending excessive and unjustified hikes in interest rates being charged by banks, and the need for restructuring existing borrowings over a longer period.

Mr Cahill called for more direct Government intervention through the financial regulator is now required.

Mr Cahill said he was hopeful of action being taken.

Meanwhile, IFA president John Bryan met with Central Bank governor Patrick Honohan to highlight the ongoing credit issues on farms and to outline the potential for the sector to assist in economic recovery.

"It was highlighted that Ireland's recovery will be export driven," he said. "However, for agriculture to fulfil its potential, the banks must work closely with farmers to overcome short-term cash-flow difficulties."

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