As drought conditions continue to add financial pressure on farmers, Minster for Agriculture Michael Creed has scheduled a meeting with the three main banks this week to discuss the situation.

As recently as a fortnight ago, banks had not reported a substantial increase in overall overdraft usage, but said they expected this to change as additional summer feed and fodder bills fell due.

Plummeting grass growth

ADVERTISEMENT

Plummeting grass growth has seen many farmers introduce concentrates into animals' diets in order to meet their feed demands. This has added to already large bills following the tough spring at the beginning of the year.

Feed mills and co-ops have reported a large increase in demand during what would normally be their quietest period and that credit issues were beginning to arise.

Measures

Ulster Bank has established a €15m weather fund to support farmers, while Bank of Ireland has made provisions for a number of short-term loans and the suspension of principal payments on existing loans.

All the main banks have urged customers to make contact if experiencing cashflow difficulties.

In an additional attempt to ease cashflow issues, Minister Creed has requested that the EU Commission ensure the earliest approval of advance direct support payments this autumn to help farmers during the prolonged challenging period.

Read more

‘Bills are yet to be paid’ – banks offer drought support

Bills mount as drought drags on