Farmers must take steps to guard their cash-flow and credit rating

IFA CHAIR ROSE MARY MCDONAGH SAYS ‘BANKS MUST HELP KEEP THE CONFIDENCE IN AGRICULTURE’ DURING CRISIS

FARMERS now need to ensure they have sufficient cash-flow and maintain their good credit history.

That was the advice from Irish Farmers’ Association Farm Business Committee Chair Rose Mary McDonagh, who was responding to the unprecedented challenges posed by the COVID-19 crisis to the farming fraternity.

Ms McDonagh said the crisis is hitting the farming community from family level to global level.

“There is so much to deal with and so many different ways we are being asked to adapt, all of which are causing problems and stress on farms.,” Ms McDonagh explained.

“It is vitally important to contact your bank if your income is being affected by COVID-19, or you think it will be.

“There are supports from the banks; Increased working capital and overdraft are being provided, in addition to payment flexibility on loan facilities including repayment breaks on interest and/or capital for an initial period of up to three months.

“Do not simply stop direct debits for loan repayments or exceed your overdraft limit without talking to them first.

“Doing so could affect your credit history and, in a worst-case scenario, your borrowings could be classified as a non-performing loan.”

Ms McDonagh said that the IFA is in constant dialogue with banks and has stressed the need for flexibility and support for farmers to ensure their cashflow.

She said that farmers have been advised about available loan breaks, as well as the option of taking out low-cost loans, if needed, as opposed to taking on expensive overdrafts.

Banks are, the IFA said, receiving a huge number of calls at the current time, but have told the Association that staff have been redeployed to help get through the current backlog.

Ms McDonagh added that farmers need to play their part also and prioritise the call they need to make to their banks: “Banks must help keep the confidence in agriculture,” Ms McDonagh added. “The land will still be here, the farmers will still be working, COVID-19 will pass and we will get through this.”