A small minority of slow payers

this could be years away. Garnishee or attachment orders have become a useful tool whereby an application is made to the court to have a debt paid out of the Basic Payment Scheme Entitlements or any subsidies or premia. The Revenue Commissioners regularly use this instrument where they are being ignored by a farmer. All these options involve court and added time and expense — there are no winners.

Three big changes which may affect the availability of credit to farmers into the future are the increase in the number of farmers trading through limited companies, the proposed abolition of cheques and online shopping. Firstly, even though it is highprofit farmers who trade through limited companies, the majority of the land assets are still outside the companies — this will cause SMEs dealing with farmers to review their credit levels.

Secondly, farmers who are tight for cash often use post-dated cheques as a means to satisfy creditors. The proposed removal of cheques and a switch to all financial transactions being processed electronically will bring a more clinical pay on delivery. Thirdly, online shopping or purchasing takes out the human element and is exclusively pay before delivery, the dream of every business large or small.

The majority of farmers pay their bills on time but the minority who don’t increase the price of goods and services to all farmers and give the industry an unwanted reputation. Farmers who organise themselves in well-run purchasing groups eliminate this risk for merchants/SMEs and they obtain better prices as a result.

Perhaps it is time for all agricultural merchants and SMEs to leave financing and credit to the banks, then favour those who pay on delivery and punish those who don’t, it would improve business and enhance the reputation of the industry.