The Irish Cattle and Sheep Association (ICSA) said that it has been informed about the use of garnishee orders by a number of members recently who have found themselves in this scenario.

Garnishee orders typically provide that EU payments owed to farmers by the Department of Agriculture, such as the Basic Payment, can be frozen in favour of the creditor.

The ICSA said that the process of obtaining a garnishee order is stacked in favour of the creditor, “who can get the order without giving the debtor a chance to state his case in the first instance”. The only option available for the debtor is to appeal it to the courts.

Speaking to the Irish Farmers Journal, ICSA general secretary Eddie Punch said that, in the long-term, it is far better for both parties to come to some sort of negotiated settlement.

“A garnishee order ultimately undermines the ability of the farmer to continue to farm, and their ability to eventually pay off their debts. If this is an emerging trend, then it’s probably not the right one,” he said.

Don’t bury your head in the sand. Look for help, from family, friends and farm organisations like ICSA. If you don’t address it, it will only get worse

He also said that, while no case is black and white, you are ultimately dependent on the judge “to show mercy” if you appeal the garnishee order.

“You can appeal to the courts, but you are already on the backfoot. The fact is that you owe the money, so you’re dependent on the judge to show mercy on you,” he said.

Seamus Sherlock, ICSA rural development chair, commented that it was “a very ruthless process which is becoming more prevalent in the face of widespread debt issues on Irish farms”. The granting of a garnishee order, he said, completely compromises the viability of a farm.

“[It has] a potentially devastating impact on cashflow, which in turn means that the farmer is less likely to be able to trade his way out of difficulty. This is obvious when one considers that on most cattle and sheep farms, the value of EU payments is more than 100% of the total income that can be earned from the farm,” he said.

Seek advice

He believes that there should be a “commonsense approach” to debts on both sides, and that farmers should seek professional advice and guidance, to try to reach a sustainable settlement with creditors.

Eddie Punch also advised farmers in debt scenarios to seek help: “There are some farmers out there in deep financial difficulty, who are really struggling with debt. When a farmer has a debt scenario, he or she is going to be in a vulnerable position, and it can be very daunting, and very challenging.

“Don’t bury your head in the sand. Look for help, from family, friends and farm organisations like the ICSA. If you don’t address it, it will only get worse,” he said.