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Cash Flow support for Irish Agriculture Business
This spring has been among the most difficult and challenging experienced by Irish farmers for a number of years. Depleted fodder reserves, limited grass growth and a delay in turning livestock out to grass are all adding to the operational and financial pressures on-farm. Heightened rainfall since last summer combined with a late spring - has resulted in additional costs on most farms, with many farmers forced to buy in fodder and/or feed higher levels of concentrates.
We are conscious of the challenges that farmers are currently experiencing and the impact that this is likely to have on farm cash flow. We understand that cash flow support will in the main be short-to-medium term in nature, and a return to normal weather and grass growing conditions should alleviate some of the operational and financial pressures on-farm currently. However, we are also aware that the full impact on cash flow may not be fully apparent until later in the year, as the payment of increased creditor bills, delayed cattle sales and a requirement to build up fodder stocks may impact on cash flow throughout the summer.
We are encouraging farmers who may need cash flow support to quantify the level of support required and make early contact with the bank to find an appropriate solution to their circumstances. When meeting with your bank take time to prepare and bring the appropriate information to support your case. Try to establish how long the cash flow pressure is likely to last and determine the level of support required to get through this period. If your situation is urgent it is important to advise your bank which will allow them to prioritise your request.
If you would like to speak to somebody in AIB on how we can help you and your business, you can engage with our team of Relationship Managers through a number of channels including call us at 1890 47 88 33 (available Mon - Fri 8am - 9pm, Sat 9am - 6pm), meet us in your local branch or go online at www.aib.ie/farming. We have a range of support measures available that can be tailored to suit individual circumstances including:
- 48 hour decision on business loans and overdrafts up to €60,000 for AIB customers*;
- Flexible working capital finance by way of a AIB Farmer Credit Line at a competitive interest rate; and,
- Extended contact hours for farmers via a dedicated phone line, 1890 47 88 33, which is available Monday to Friday 8am to 9pm and Saturdays from 9am to 6pm.
AIB maintains a positive medium-to-long term outlook for the sector but recognise the short-term difficulties that are currently being experienced and are here to help, should cashflow support be required. We have always taken a long term view of the farming sector and we are committed to supporting our farming customers through these short-term challenges. Our advice to farmers requiring support is to talk to their bank as early as possible as solutions are best tailored at an early stage.
We look forward to a return to normal weather and grass growing conditions.
AIB Agri Sector Team.
* We aim to provide a decision within 48 hours, for a minimum of 85% of applications from AIB customers on business loans and overdrafts, upon receipt of all required information. 48 hours excludes Saturdays, Sundays and Bank Holidays. If you have previously been through a restructure, please talk to us in more detail so we can advise the best solution for you.
Lending criteria, terms and conditions apply. Credit facilities are subject to repayment capacity and financial status and are not available to persons under 18 years of age. Security may be required. Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland.
Please be aware that all of the views expressed in this Blog are purely the personal views of the authors and commentators (including those working for AIB as members of the AIB website team or in any other capacity) and are based on their personal experiences and knowledge at the time of writing.
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Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland. Copyright Allied Irish Banks, p.l.c. 1995.