Speaking on the second day of the IFA Annual General Meeting, IFA President
John Bryan said that the restructuring of the Irish banks must result in a
return to core business.

Mr Bryan said, “Over the last decade, banks built up huge, unsustainable,
property-based loan books. The restructured banks must focus on supporting
the SME sector, particularly farm businesses.  Bank personnel in branches
must be appropriately trained in order to properly assess credit
applications and provide the ongoing borrowing requirements of individual
farm enterprises.”

He continued, “After two very difficult years, farmers are again looking to
invest in their businesses. Farmers are rightly concerned about the
increasing costs of borrowing, which may provide a disincentive to
expansion.  It is vital that borrowing costs are kept competitive.”

Michael Dowling, head of AIB Agri-Strategy, addressed the AGM and said the
key challenges were rising input prices, market volatility and the CAP
negotiations.