A special sitting of Stormont's Agriculture Committee has been summoned to question representatives of the Northern Bank, Ulster Bank and the First Trust Bank over their relationship with farmers.

DUP Assemblyman Ian Paisley Jnr, chairman of the committee, said: "Farmers have always been good bank customers as they will invest heavily in infrastructure and also have significant assets to act as security against borrowing.

"However, as the agricultural industry and in particular the dairy sector, face a tough time there are very clear instances of the banks inflicting further pain on the industry.

"The Assembly does not have power over banks. However, I am determined to challenge them about some of the practices which have been taking place in the Northern Ireland agriculture sector."

Mr Paisley said that there were "many cases" where rural businesses in particular had seen "huge increases" in fees charged by banks and even the introduction of fees for services which never previously incurred a charge.

UUP Assemblyman George Savage, who sits on the committee, said that as a farmer he knew how difficult it was for farmers to make a living.

But, he said, "many farmers" had come to him in recent months alleging that they were facing "financial problems with the banks".

"As a farmer myself I know the uphill struggle that they face – you only need to look at milk prices to see how farmers are being given a raw deal," he said.

"In addition to this, as we look ahead to harvesting, we need to ensure that grain prices are regulated and we need to ensure that arable and beef farmers also get a fair deal."

Ulster Farmers Union president Graham Furey welcomed the meeting. "We have already met the banks because we feel they are being extortionate with their overdraft fees," he said.

"Base interest rates are down about 4.5 per cent from about a year ago but members are only paying around 1-2 per cent less than previously.

"Banks will no longer negotiate and fees are stringently imposed. It will be interesting to see how banks will react if farmers start to shop around and move to different providers."

Brian Mairs, spokesman for the British Bankers Association, said that banks had been forced to double the amount of capital they hold in the past 12 months.

"The Bank of England and Libor interest rates may have fallen, but money costs more in a recession because the risks to banks have increased. But banks are committed to lending to their clients," he said.