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

I was pleased to announce the launch of the agriculture cashflow support loan scheme on Tuesday. One of my priorities has been to address the impact of the change in the sterling exchange rate and lower commodity prices in some sectors, which have caused cash flow difficulties for farmers. The scheme was developed in co-operation with the Strategic Banking Corporation of Ireland, SBCI, which has confirmed that AIB, Bank of Ireland and Ulster Bank will distribute the loans making €150 million available to farmers throughout Ireland at interest rates of 2.95%. It will provide farmers with a low cost, flexible source of working capital and will allow them to pay down more expensive forms of short-term debt, ensuring the ongoing financial sustainability of viable farming enterprises.

This loan scheme forms part of a “three pillar strategy” in response to income volatility, which I announced as part of budget 2017. Along with tax measures and farm payments, it will alleviate some of the pressures being caused by the recent market difficulties, which have been compounded by the uncertainty around Brexit.

The loans will be available to all livestock farmers, tillage farmers, horticulture producers, including mushroom growers, and others involved in primary agricultural production, including poultry producers. The loans will be for amounts up to €150,000 for up to six years. The interest rate at 2.95% will represent a significant saving for farmers when compared with other forms of short-term unsecured finance currently available. The loans will be flexible with interest only facilities of up to three years.

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It will provide farmers with a low-cost, flexible source of working capital and will allow them to pay down more expensive forms of short-term debt, ensuring the ongoing financial sustainability of viable farming enterprises.

This loan scheme forms part of a three-pillar strategy in response to income volatility, which I announced budget 2017 and which also includes tax measures.

The loans will be available to all livestock farmers, tillage farmers, horticulture producers, including mushroom growers, and others involved in primary agricultural production, including poultry producers. The loans will be for amounts up to €150,000 for up to six years. The interest rate at 2.95% will represent a significant saving for farmers when compared with other forms of short-term unsecured finance currently available. The loans will be flexible with interest-only facilities of up to three years.

The SBCI has demonstrated its commitment to the agriculture sector and has worked with my Department to get this product to the market in a timely manner. I welcome the participation of the main banks, which will ensure nationwide coverage for the scheme. The fact that most farmers will have an existing relationship with the participating banks should facilitate the loan application process. Normal lending assessment criteria will apply although the loans will be unsecured in nature, thereby facilitating a more straightforward application process. Potential applicants should note that the loans will be disbursed on a first-come, first-served basis and will need to be allocated by late summer 2017 to comply with the requirements attaching to the European Union funding.

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