The Minister for Agriculture, Food and the Marine has urged financial institutions to "take a proactive and sympathetic approach" when dealing with farmers and contractors.

Minister Martin Heydon has had a number of meetings with various financial institutions to "ensure continued support" for agri-contractors and farmers as they continue to battle high costs in the current economic environment.

Since the beginning of the Middle East conflict in late Februrary fertiliser and fuel prices have soared.

The global financial institution ING today (Friday, April 24) warned that "clarity over the next phase in the Middle East conflict is in short supply, and it now looks as though inflation pressures may be broadening". 

It is understood that during meetings with financial institutions Minister Heydon has stressed "the importance of flexibility and understanding from lenders" - particularly in relation to credit lines and short-term financing.

He has also outlined to banks that payments will be made to farmers and contractors under the government’s forthcoming fuel support scheme.

Farmers

Minister Heydon previously announced a €100 million Fuel Subsidy Support Scheme to support farmers, agricultural contractors and fishers.

Further details around this package are expected to be announced next Wednesday (April 29).

It has been confirmed that payments from this scheme will cover the months of March up to the end of July which also coincides with peak fuel usage season for field work on farms.

Speaking following his first series of meetings, Minister Heydon said: “Farmers and farm contractors are operating in a challenging environment, with significant cost pressures impacting cash flow.

“The message is clear - farmers and contractors will receive support, and in the interim, they should be met with understanding by their lenders."