Michael Creed (Cork North West, Fine Gael) | Oireachtas source

In view of the sustained period of lower commodity prices and the cashflow difficulties this has caused for farmers in several sectors, I have committed to working with all stakeholders at national and EU level to address the issues involved and to ensure that we continue to have a sustainable and resilient sector.  One of my priorities is to support the provision of lower-cost flexible finance. Therefore, I was pleased to announce on budget day plans for a €150 million agriculture cashflow support fund. The fund will support highly flexible loans of up to six years in duration for amounts up to €150,000 at an interest rate of 2.95%.  It will be available to livestock, tillage and horticulture farmers. The proposed interest rate will represent a significant saving to farmers when compared with other forms of finance currently available. The loan fund is part of the three-pillar strategy to respond to income volatility that I announced in the recent budget along with additional tax measures and farm payments.

Further details of the loan fund will be provided shortly, but it is expected that it will be operational as soon as possible in early 2017. The Strategic Banking Corporation of Ireland, SBCI, will make an open call for lending institutions to participate and I have spoken to the main banks to encourage them to make this facility available to their customers. Normal lending assessment criteria will apply although the loans will be unsecured in nature thereby facilitating a more straightforward application process. My Department and SBCI are breaking new ground with this innovative approach to delivering support to farmers. It is designed to maximise the leverage achieved on the funding available. The provision of €11.1 million in EU funding and €14 million in national funding by my Department will enable the SBCI to leverage the total fund of €150 million. I encourage farmers to consider their cashflow and borrowings situation now and, if it is appropriate to their circumstances, to be prepared to apply for these loans when they become available.

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