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One of the major banks in NI has said it has not changed its policy on lending money to dairy farmers.
Reports have been circulating that several local dairy farmers were not successful in securing extra credit from Danske, but were able to get loans from other banks in NI.
“We remain committed to the dairy and other farming sectors and we are still lending,” Rodney Brown from Danske Bank said.
“Our lending decisions are always based on the ability of the customer to re-pay. This is based on analysis of cashflow over several years and not just one year,” he added.
Danske’s head of agribusiness said that uncertainty relating to Brexit was not affecting lending decisions.
“We are looking at the wider economy and expect economic growth to remain modest, but that is not specific to the agriculture industry,” Brown said.
Reports indicate that current milk prices are not covering production costs on many dairy farms across NI and additional borrowing to address cashflow difficulties is becoming more common.
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