IFA Farm Business Chairman Martin Stapleton has said the huge demand from farmers for the agri-cashflow loan, which has led to the closure for new applications in two of the banks, has highlighted the enormous gap in the market for working capital at a reasonable cost.
He said, “IFA has consistently argued for lower-cost credit, both for short and long-term borrowing. Irish farmers are at a competitive disadvantage compared to their EU counterparts with higher than average rates. The success of the scheme clearly shows the huge demand there is for competitively priced working capital”.
Martin Stapleton concluded, “There are farmers who did not apply for the loan on this occasion, but for whom access to low-cost credit in the future will be hugely important. The SBCI should build upon the success of this loan, and put in place additional funds over the coming months for lower-cost loans for both working capital and longer-term investment. As we did last year, IFA will be engaging with SBCI to make the case for this funding, and will use the evidence of the huge demand for the agri-cashflow loan to back this up”.