Posts Tagged ‘Irish Farmers Monthly’

MEDIATION, DEBT MANAGEMENT AND RURAL BUSINESS FOR FARMERS

Wednesday, July 28th, 2010

Irish Farmers Monthly

Martin & Rea Agricultural Consultants has launched three new Services: Mediation, Debt Management and
Rural Business Development. Speaking at the launch, Richard Rea said he found it thoroughly amazing
that the Head of NAMA, the Bankers and the Financial Regulator are lacking in imagination as to how to
put in place a mini-NAMA for small borrowers and businesses. He pointed to the Farm Rescue package of
the 1980’s and said a similar package was necessary today for farmers. Tom Dawson, Agronomy Director
of Services with the Company, said farmers have been very badly affected, particularly at the back end of
last year and early this year. He said they are struggling with credit, and are experiencing great difficulty in
getting credit lines agreed with their Institutions. He said the Company had recently helped a farm family
where – in a Transfer situation, with all the Loans in the Parents’ name – the son, who was taking over the
farm, was looking to get it all transferred into his name. However, the Bank was looking to increase the
Credit Terms and more security than what was there originally. “In fairness, a lot of local Banks are quite
willing to talk to us and try and make a deal, but they are coming under pressure too from higher up the
line. Back in the 1980’s, when we were involved in a lot of this type of work, Bank Managers had more
autonomy than they do now”. While Interest Rates are nothing like they were in the 1980’s, he says
the level of Debt is substantially higher in a lot of cases. Coupled with this, the level of farm income is
making it more difficult for farmers to make the repayments.