Banks 'must do more' to help farmers through financial storm
Banks must do more to help farmers get through the financial storm affecting all enterprises, the Ulster Farmers' Union (UFU) has said.
A mix of rising input costs and falling returns with no signs of any early improvement is affecting many farming businesses, it said.
Farmers facing financial difficulties "often feel alone, but that this is certainly not the case now", the union warned.
It stressed this was why farming families needed the reassurance that banks would work with them to get through this crisis.
David Brown, UFU president, said the issue was "as serious a financial situation as many farmers can remember".
"The current market prices are unsustainable and once again, the primary producer is taking the brunt of the price squeeze," he warned.
"The industry has always had a good and a positive relationship with the banks and farmers have been valued and profitable customers for generations.
"That is why the banks need to do more to respond to this crisis, particularly as the night’s drawing in confirms more costly times are on the way for farm businesses."
An increasing number of calls from farmers are ringing the union, with the UFU saying it was "depressingly clear there are problems across the industry on farms of all sizes and enterprises".
Global dairy markets remain difficult due to ample global supplies of dairy products and weaker demand, particularly from China.
Market assessments for a better final quarter to 2023 now look wide of the mark by a long way.
Meanwhile, beef and sheep prices have been and remain poor, while input costs continue to rise.
Against this background, the UFU said banks should engage with farmer customers in a discussion around what products are available to help ease cash flow problems.
“The UFU will be engaging with banks and other credit providers to ensure farmers are properly supported over the coming months," Mr Brown said.
"This is an approach that will head off potentially even more difficult months ahead for farmers and the banks – a clear case of it making sense to talk."
