The Minister for Agriculture, Food and the Marine urged financial institutions to “take a proactive and empathetic approach” when dealing with farmers and contractors.
minister Martin Haydon He held a number of meetings with various financial institutions to “ensure continued support” for agricultural contractors and farmers as they continue to battle high costs in the current economic environment.
Since the beginning of the conflict in the Middle East in late February, fertilizer and fuel prices have risen.
Global financial institution ING warned today (Friday, April 24) that “clarity on the next phase of the conflict in the Middle East is lacking, and it now appears that inflationary pressures may widen.”
It is understood that during his meetings with financial institutions, Minister Haydon stressed “the importance of flexibility and understanding on the part of lenders” – particularly in relation to lines of credit and short-term financing.
He also clarified to the banks that payments will be made to farmers and contractors under the upcoming government fuel subsidy plan.
Farmers
Minister Haydon previously announced a €100 million fuel subsidy scheme to support farmers, agricultural contractors and fishermen.
More details about this package are expected to be announced next Wednesday (April 29).
It has been confirmed that payments from this scheme will cover the months of March until the end of July which also coincides with the peak fuel use season for field work on farms.
Speaking after his first series of meetings, Minister Haydon said: “Farmers and farm contractors are operating in a challenging environment, with significant cost pressures affecting cash flow.
“The government is stepping in with targeted fuel subsidies and we will open applications for these schemes soon. In the meantime, it is essential that financial institutions show flexibility and work constructively with their clients.
“The message is clear – farmers and contractors will receive support and, in the meantime, they should be met with understanding by lenders.”
