The Irish nursery sector, which is struggling with heavy losses following two bleak winters, has averted a threat of some businesses being put into receivership because of their inability to meet loan repayments.
A deal has been agreed that offers relief on repayments has been agreed with ACC Bank, owned by the Dutch Rabobank Group, following lengthy negotiations with representatives of the Irish Farmers’ Association (IFA). Talks with other bank groups are still ongoing.
According to James Kane, chair of the IFA farm business committee, Rabobank had been adopting “a particularly aggressive” approach on repayment of borrowings, with threats of receivers being appointed. “We considered staging protests outside the bank, but ultimately decided that getting round the table would offer a better solution.
“We brought some of the nursery owners to our meetings with the bank, so that they could explain at first hand the difficulty they were having with repayments because of the winter losses, the damaged crops and the reduced prices available as a result of the recession. Many of the nurseries have borrowings of at least €1m.”
While full details of the relief deal have not been disclosed, it is understood that repayments are to be made more “affordable”, with a freeze on some interest charges and a rate reduction on others. “The priority has been to ensure that there is no fire sale of assets, as would happen if receivers were appointed,” said Kane. “In addition to the nurseries, other sectors of the farming industry are also being covered in our talks with the banks.”
Horticulture minister Shane McEntee recently visited Yellow Furze Nursery and was told it was “just surviving”, after losses of €300,000 that had forced lay-offs and cutbacks.
