Charlie McConalogue (Donegal, Fianna Fail)
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31. To ask the Minister for Agriculture, Food and the Marine if he will provide operational details on the new SBCI agri fund; the details of funding sources and financial providers that will lend moneys to farmers; and if he will make a statement on the matter. [32324/16]

Michael Creed (Cork North West, Fine Gael)
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In view of the sustained period of lower commodity prices and the cash flow difficulties this has caused for farmers in several sectors, I have committed to working with all the stakeholders, both 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 plans for a €150 million fund for 'Agri Cash Flow Support' on Budget Day.

This fund will support highly flexible loans for up to six years, 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 a “three pillar strategy” in response 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 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, designed to maximise the leverage achieved on the funding available. The provision of €11.1million in EU funding and €14 million in National funding by my Department enables the SBCI to leverage the total fund of €150 million.

I would encourage farmers to consider their cash flow and borrowings situation now, and if appropriate to their circumstances, to be prepared to apply for these loans when they become available.