IFA Farm Business Chairman James Kane has said that the banks must pass on the latest ECB interest rate cut to farm business customers.
Mr Kane said, “In the past year, ECB interest rate increases have been passed on to bank customers, including farm businesses. The additional costs of borrowing have put pressure on viability, deterring investment and undermining the competitiveness of the agriculture sector. As the majority of farms operate as sole traders, the increased costs of borrowing impact both at business and farm family level.”
He concluded, “The interest rate cut is intended to act as a stimulus to growth in the Eurozone economies. For this to happen, the benefit of this rate cut must be passed on to farmers and other small business customers.”