IFA President Eddie Downey has hit out at the banks for imposing excessively high interest rates on farm businesses.
Eddie Downey said this week’s meeting of the Executive Council heard strong criticism of the cost of funding and he said the banks will have to reduce the margin they are taking, particularly on overdraft and short-term working capital facilities.
Eddie Downey said, “Significant investment is planned on farms with the abolition of milk quota and the rollout of the RDP TAMS programme. It is expected that there will be strong demand from the farming sector for matching funding via the banking system over the coming years.
“However, with money freely available to banks at historically low cost, and with the strong repayment record of farmers, there is no justification for the excessive rates being charged. Farm businesses must remain competitive and lower interest rate and charges by the banks are justified.”