Written answers

Wednesday, 22 May 2013

Department of Agriculture, Food and the Marine

Credit Availability

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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238. To ask the Minister for Agriculture, Food and the Marine further to the food harvest 2020 report which sets outs a growth plan which foresees a 1.5 billion euro increase in the value of primary output, a value increase of 3 billion and a 42% increase in exports over the years 2007-2009, the FCI endorses this report but the agricultural sector can only do so much without his assistance, currently over stretched farmers are not being provided with credit from banks and the action he will take to address this issue; and if he will make a statement on the matter. [24795/13]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The Deputy might note that significant progress has already been made towards achieving the Food Harvest 2020 targets. The Food Harvest High Level Implementation Committee, which I chair, monitors progress and by end 2012, the value of overall primary production had risen by 21%, (2020 target 33%) and the value of exports had increased by 12%, (2020 target 42%). By end 2010, the latest data available from the CSO, value added production had improved by 5.6%.

I am aware that, like many other sectors, farmers can find it difficult to get credit due to the strict assessments introduced as a result of the global financial crisis. I am, of course, also conscious of the effect on farmers’ incomes due to the increase in input costs as a result of the current fodder shortage. Consequently, I recently announced an extension of the imported fodder transport scheme for a further two weeks and the doubling of the fund to €2 million. To date some 30,000 tonnes of imported fodder have benefited from my Department’s contribution. This remains a very challenging situation for farmers and my Department is continuing to monitor the situation on a day-by-day basis.

My officials are in regular contact with farm bodies, various national banks and the Banking Federation concerning the availability of credit to farmers. I am aware that a number of banks have designed new credit facilities specifically tailored for the agri-food sector in recent months. Also, despite the concerns expressed about lack of credit, a relatively small number of cases from the agri-food sector have come before the Credit Review Office. My officials have assisted one of the farm organizations in explaining the work of the Credit Review Office, so that they can help their members in this regard. I would encourage farmers to make use of this system should they have difficulty in accessing credit.

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