Prudent lending essential in the food sector – Doyle

Fine Gael TD for Wicklow/East Carlow, Andrew Doyle, has welcomed Bank of Ireland’s announcement of a new €1 billion fund to support the ongoing development of the agri-food sector up to the end of 2017.

“With increasing income volatility in farming in recent years, the fact that the banking sector is developing products that support farmers to manage their enterprises through difficult periods is positive and progressive.

“This fund will enhance future growth and provide support for a range of farm investments including livestock, land or farm machinery.

“The agri-food sector continues to be one of best-performing sectors of Ireland’s economy, with growth in jobs and exports up 11.1% in the first quarter of this year. CSO data shows that the agriculture, forestry and fisheries industries grew by 5.5% in 2013.

“The Irish agri-food sector is worth €10 billion in exports each year and so those operating in this sector must be supported. However, prudent lending is vital now more than ever and we must remain cognisant of this.

“Financial ups and downs are part of life and especially in the agri-food sector. With the announcement of the bank’s new flexible farm loans these supports will offer the agri-food sector the opportunity to align their loan repayments with their farm’s cash-flow.

“It is very important that there is equity for all stakeholders in this sector and flexible products and funds can help to support the indigenous industry. It is critical that the small rural farmer can remain competitive with additional support and sensible lending to help address short to medium cash flow pressures”.