Pillar banks have not ruled out future loan sales which could include farm assets to so-called vulture funds. In response to a query from the Irish Farmers Journal, Ulster Bank, AIB, Bank of Ireland and Rabobank stated that future loan sales were still on the cards.

“As announced in our Q3 results for 2018, we have provided for a loan sale in the future,” a spokesperson for Ulster Bank said.

Many of the banks cited the legacy of Ireland’s recession and pressure from Europe as part of the reason for reducing loan debt.

“We remain focused on reducing impaired loans to a level more in line with European norms,” a spokesperson for AIB said, while adding the bank remained committed to working with customers on a “case-by-case” basis.

As previously reported in this newspaper, over 28,000ac of farmland is controlled by vulture funds in Ireland.

In response, the IFA farm business chair Martin Stapleton stated: “AIB and Rabobank are currently considering selling more loans. We have written to both banks seeking a meeting before any more are sold.”

The ICSA rural development chair Seamus Sherlock has also called for Minister for Finance Paschal Donohoe to increase control measures over vulture funds.

It’s understood that farm loans are an attractive addition to loan sales, given the guaranteed return investment in land value.

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