Tom Barry (Cork East, Fine Gael) | Oireachtas source

I welcome the witnesses. It is good to see the banks. As a commercial farmer, the level of engagement from banks has been very good. I have considerable experience in this matter. It is popular to give out about banks. I know there are difficulties but the experience levels of the people I dealt with means we are quite happy with it.

Mr. Maurice Crowley mentioned income downturns. Does he have any idea about income upturns? While we are discussing a negative situation, we should be looking forward. We should put away something in the good day rather than spending it on equipment capital and wasting it on expensive conacre. What are the views of the witnesses on the reduction of the single farm payment over the coming years? How will it affect productive farmers, as they are the ones who have borrowed most? What are the views of witnesses on land lease costs? I am not referring only to conacre, a term we all love. At the moment, we have land being leased with taxation incentives for the person letting the land. That is right the right approach but most of the advantage is being given away by paying over €300 per acre for ten or 12 years. There is a drag to get the land. Do the witnesses know about the merchant credit available? Do the banks have a tie-in with larger farm businesses? There could be a false level of credit because of that.

The witnesses mentioned dairy farms, and it seems to be all about dairy farms, but I ask them to keep in the back of their heads that there are also tillage farmers and beef farmers. Will beef farmers in some of the dairy areas be cannibalised? There will be competition for land.

What are the views of the witnesses on retirement? As a farmer hits 45 years, his or her borrowing potential is considerably reduced because the repayment term must shorten. It is a lot to ask for health and wealth for 20 years when someone is 50 years of age. Are the banks actively discussing their retirement plans and transfer costs, which will be considerable?

One thing I am worried about is the 90% stipulation. It is based on €3 million. Do the witnesses think €3 million is enough? What figure would they suggest? Many people have very valuable herds and equipment and milking products that cost huge sums of money.

What are the witnesses' views on forward selling? In the grain industry, we forward sell all the time. Last year was quite a good year if one had forward sold last March. The prices for wheat and barley were sound.

Are the witnesses encouraging diversification? Are they looking at the business plan and encouraging whatever potential for diversification exists within farms? In the last budget, income averaging was brought across for five years but it also includes off-farm income which is quite important because any diversification that can happen profitably on a farm will also bolster this peak and trough, which is very important.

Mr. Farrell mentioned an increase in lending of 19% and that 94% of those were approved. This goes for all the banks. Does that include people moving from being a sole trader to being a limited company, which is a very simple way to go because the operator is already with a bank but under a different name? In those circumstances, what would be the average increase in interest rates when one is switching one farmer over?

To conclude, the witnesses should be aware of the existence of tillage and beef farmers.