Credit for Farmers is Essential for Growth in the Sector

South Tipperary outgoing T.D. and Fine Gael candidate for the General Election, Tom Hayes has insisted that availability of credit to farmers and agri-food producers must be one of the major issues for the next government.

“I have highlighted again and again that the banking crisis banks are no longer willing to loan to farmers, and my meetings with Macra na Feirme, the IFA and local farmers over the last few weeks have only proven this. These decisions by the banks are slowly starving the industry of the funds which are need for vital investment by farmers which are needed to purchase land and machinery. With major changes ahead in the dairy sector, and improvements in machinery and stocks necessary for all farmers, we need to be investing in this industry. This cannot happen while the banks have a stranglehold on the industry.

“I understand a farm has to treated like any other family business and like a business, investment is essential if the business is to grow and become more profitable, especially if family farms are to survive in the Irish industry.”

“In government, Fine Gael will push banks to increase the amount of lending. But, more must be done that pushing to help Irish farmers. We believe banks need to be re-educated on assessing the viability of farm enterprises now that the era of using EU supports as collateral for lending has been diminished. Teagasc should have a role in liaising with the banking sector on modern farm systems.

“We will introduce a partial loan guarantee scheme for small and medium sized businesses and young farmers with viable farm enterprises to overcome some of the market failure in providing credit to sustainable small businesses.”

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

You must be logged in to post a comment.