Farmers are applying in large numbers for the low-cost agri loans. Almost half of the €150m total has been applied for, the Irish Farmers Journal understands.
This points to all available funding being used up in advance of the September close of applications.
Some farmers have expressed concern that they were being asked to repay loans within one or two years, despite having requested longer terms and the scheme offering finance for up to six years. That could leave them returning for new borrowings at higher interest rates without having fully addressed their cashflow issues.
ADVERTISEMENT
Time pressure placed on farmers
IFA farm business chair Martin Stapleton has written to the Strategic Banking Corporation of Ireland (SBCI) and the three pillar banks on this.
“Short terms of 12 and 24 months on working capital finance are inappropriate for some farmers,” he said. “The debt they hope to finance has built up over a number of years and cannot be repaid over a short period of time.”
One bank is refusing to consider past purchase of trading stock such as cattle or fertiliser as eligible for the scheme, contrary to the approach of the other two providers. Martin Stapleton has raised this issue too.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
Farmers are applying in large numbers for the low-cost agri loans. Almost half of the €150m total has been applied for, the Irish Farmers Journal understands.
This points to all available funding being used up in advance of the September close of applications.
Some farmers have expressed concern that they were being asked to repay loans within one or two years, despite having requested longer terms and the scheme offering finance for up to six years. That could leave them returning for new borrowings at higher interest rates without having fully addressed their cashflow issues.
Time pressure placed on farmers
IFA farm business chair Martin Stapleton has written to the Strategic Banking Corporation of Ireland (SBCI) and the three pillar banks on this.
“Short terms of 12 and 24 months on working capital finance are inappropriate for some farmers,” he said. “The debt they hope to finance has built up over a number of years and cannot be repaid over a short period of time.”
One bank is refusing to consider past purchase of trading stock such as cattle or fertiliser as eligible for the scheme, contrary to the approach of the other two providers. Martin Stapleton has raised this issue too.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS