Irish Farmers' Association (IFA) president Tim Cullinan has welcomed confirmation that farmers are included in the Government’s €2bn Credit Guarantee Scheme.

“Cashflow is key for farmers at the moment. It’s important that the fund is open to farmers, but we need the detail and the small print to ensure it’s farmer friendly,” he said.

“Farmers need access to working capital to cover their operating expenses during this unparalleled crisis. Agri merchants and co-operatives are not in a position to provide increased/extended credit to farmers, as they are experiencing their own cashflow problems as cash dries up.”

The three-month extension will give farmers some additional breathing space

IFA farm business chair Rose Mary McDonagh has also welcomed the Central Bank’s decision to allow commercial banks and asset finance houses to extend the COVID-19 loan capital and interest repayment breaks to six months.

“The three-month extension will give farmers some additional breathing space, given the fallout from COVID-19 on markets and commodity prices. As part of the process, Banking and Payment Federation Ireland (BPFI) members, which includes all the main Irish banks, have committed to actively contacting farmer customers who have already availed of the payment break about the possibility of extending the break for a further three months. Farmer customers currently availing of the break do not need to contact their lender,” she said.

Farmers applying for the first time, will be offered a six-month payment break straight away.

Stopping repayments without lender approval will impact on your credit history

“It’s important for farmers wishing to avail of the break for the first time that they apply and receive approval from their bank/finance house. Stopping repayments without lender approval will impact on your credit history as your loan technically will be classified as non-performing after 90 days of missed repayments,” McDonagh said.

IFA animal health chair Pat Farrell said the revised TB testing protocol issued by the Department of Agriculture is a practical amendment to the programme, taking into account the current COVID-19 advice.

IFA had constructive discussions with the Department of Agriculture last week on the issue and the changes announced provide clarity for farmers and vets on two key areas: the testing of calves under 120 days, and people over 70 involved in TB testing.

The IFA chair said those farmers who want to test calves under 120 days in their herd are allowed. This is of major benefit to farmers who want to sell these animals later in the year, and avoids the need at that time to have costly private tests carried out on small numbers of animals.

The revised guidance also allows farmers and vets in the over 70 category to be involved with TB testing, if they wish. The revised protocol extends the facilitation to delay tests, the exemption of calves under 120 days from the testing requirement, the facilitation of internal movements of calves up to 120 days and the provision of a 28-day grace period after test due dates, where trade will be facilitated.

It’s IFA policy to insist on payment on the day

With marts operating under COVID-19 restrictions, more activity on private farm-to-farm sales and increased live exports, IFA national livestock chair Brendan Golden said farmers selling cattle should ensure that their payment is secure.

“It’s IFA policy to insist on payment on the day, or ensure that you are selling through an outlet where payment is guaranteed or secure,” he said.

While the marts are not operating as normal, they are providing a valuable service to farmers in most parts of the country.

“The sooner we can get the marts fully re-opened, the better. There is an increased level of direct selling going on and farmers need to be extra vigilant regarding security of payment,” Golden said.

Farmers should be extremely careful about payment arrangements before parting with their stock. “Sell through a local licensed mart where you know your payment is secure, or insisting on payment upfront on the day is the best approach.”