Farming can be challenging, given it has to deal with volatility, yet Irish farmers continue to show resilience and a willingness to adapt to an ever-changing landscape.

As primary food producers, farmers have seen a significant increase in input costs in recent times, a concern which was highlighted in a recent survey by the IBCB.

They also cited “rising energy prices, the war in Ukraine and the cost-of-living increases,” all of which are “resulting in cost pressures that may require support from your bank”, according to Jennifer Hughes, head of customer policy at IBCB.

Income volatility

Donal Whelton, head of agri at AIB, says that “farmers are operating in an ever-changing marketplace where income volatility continues to be a feature”.

It is evident that these concerns will continue to have a significant impact in the coming months, along with cost pressures arising from tightening environmental restrictions.

During difficult periods, it’s vital for farmers to have ongoing contact with their banks and the advice would be to make early contact if support is needed.

Banks can support farmers with issues such as cashflow challenges or repayment difficulties, but customers often underestimate the time required to put new banking arrangements in place.

Support from banks

Permanent TSB business banking manager, Patrick Ryan, explains that, “having an early discussion with your bank will help establish plans and timelines to help support your business”.

Banks have specialist teams available to help support customers.

Eoin Lowry, head of agri at Bank of Ireland, discusses the options available to farmers: "While there are agri business advisers and specialist teams within banks to ensure farmers have the most suitable supports, there are also other independent supports available.

"These include Credit Review, the Money Advice and Budgeting Service and the Insolvency Service of Ireland."

Central Credit Register

The Central Credit Register (CCR) allows banks and customers access to detailed information on borrowings from active and closed credit facilities. Generating a credit report is free of charge and is available online on www.centralcreditregister.ie

When accessing a line of credit, you may be asked to provide security for the loan. Security required is assessed on a case-by-case basis across all financial institutions.

It is important to be aware that if a customer needs to restructure a loan, assets held as security on other loans cannot be considered on new lines of credit.

This topic will be discussed in more detail during a podcast in the coming weeks.

Previous articles in this series:

1. Applying for bank finance in Ireland

2. Building a relationship with your bank