'Serious concerns' about Ulster Bank's tougher approach to farm businesses
The Ulster Farmers’ Union says it is 'seriously concerned' by suggestions that the Ulster Bank is adopting a significantly tougher approach towards some farm businesses.
According to reports this is built around giving farmers a number of stark choices, including immediate repayment or seeing their debt sold to a third party.
“If this is the case it is unacceptable and goes against all the assurances we have had in discussions with all the banks about how to handle the crisis farming families are going through,” said UFU president, Ian Marshall.
He added that this draconian approach, even if it involves only a small number of farms, overturns years when banks recognised that farming went through occasional tough times, but was ultimately good business.
“The security farmers offer, with land, is second to none – and as family businesses they have a track record of paying off debts, and not walking away as other businesses did through the recession,” said Mr Marshall.
Mr Marshall said that he had contacted the Ulster Bank and the agriculture minister, Michelle O'Neill to raise his concerns and was seeking an early meeting with the bank. The UFU says it wants any members contacted by the bank to bring their concerns to the UFU.
It says what makes this apparent disregard for the impact of decisions on farming families all the worse is that the parent company of the Ulster Bank, RBS, was bailed out to the tune of billions of pounds by taxpayers.
“Despite that, it is now seemingly seeking to punish farmers deemed ‘non-performing’ in difficulties because of economic factors outside their control,” said Mr Marshall.
The UFU says that if these reports are accurate it sets a dangerous precedent, and could fracture relations between the bank, the farming community and the food industry.
“Everyone recognises that farming is going through tough times. We understand that it is frustrating for banks to deal with these problems – but at the same time they have done very well out of farming in the past, and will do so again.
“What they are doing over these cases is akin to kicking someone when they are down – and with many farming families in a fragile mental state because of the problems they face, the bank must be aware of the potential consequences of their actions,” warned the UFU president.
Mr Marshall said that over the years the Ulster Bank had been a key part of the farming community, making this decision all the more disappointing. “It has played a big role in the farming community, not least as the major sponsor of the Balmoral Show.
“However if it is true that it is using these tough tactics on what it views as problem farm businesses, then it will take a lot more than PR and sponsorship to take away the bitter taste of a big businesses bullying families when they are at their lowest ebb,” he said.
