Monaghan IFA Farm Business Chairman, Andrew McConkey, has welcomed this week’s announcement by AIB of a dedicated fund for SMEs and farm businesses.

The aim of the scheme is to support viable small businesses through the
current economic downturn. “The agriculture sector experienced a severe drop in income of over 30% in 2009, and as a result, many farmers found themselves under pressure with bank repayments and a lack of access to credit. While there has been a price recovery in some sectors this year, it is vital that banks continue to work with viable farm businesses on restructuring of existing borrowings, extending loan periods, and providing additional working capital facilities.”

The Business Chairman added that throughout the downturn, the agriculture sector has continued to undertake investment, as he said, is evidenced by the fact that the sector was responsible for almost a third of all small business lending over the past 18 months. According to him, the agriculture sector has a very good record of debt repayment and this must be reflected in competitive interest rates and bank charges being extended to the sector. “IFA is meeting with all the major banks to discuss the issues of access to and cost of credit for the agriculture sector, including fees and bank charges, the outlook for the agriculture sector and the demand for new credit and restructuring requirements,” Mr McConkey concluded.