The use of a personal insolvency arrangement (PIA) has been suggested for farmers forced to sell their land due to debt.
Shane O’Loughlin, the farm business chair from the Irish Creamery Milk Suppliers Association (ICMSA), has highlighted that the court-approved PIA mechanism has thus far been successful in preventing fire sales of farmland by vulture funds.
O’Loughlin explains that the package is usually facilitated by a personal insolvency practitioner, who applies to the courts on behalf of the farmer to seek the protection of a personal insolvency arrangement. By restructuring debts, the PIA aims to set repayments at a realistic level for the farm business.
While PIAs do not allow farmers to completely walk away from their debts, it serves to process the repayment of outstanding loans over a longer time, making it more manageable.
Gary Digney, a personal insolvency practitioner from PKF-FPM, adds that, “I have been working with the ICMSA for a number of years now and there have been dozens of farms that have been able to use the PIA to retain the farmland and restructure their debt on a sustainable basis.”
“I would encourage any farmer in debt to seek the advice of an experienced personal insolvency practitioner to assess their options.” As such, PIA arrangements offer practical solutions for farmers, which enables them to stay in their homes and work their farms.