Charlie McConalogue (Donegal, Fianna Fail)
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38. To ask the Minister for Agriculture, Food and the Marine if emergency funding will be available to tillage farmers in view of recent severe weather; and if he will make a statement on the matter. [32320/16]

Michael Creed (Cork North West, Fine Gael)
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I am indeed very much aware of the challenges this year for the tillage sector with low prices and challenging harvest weather. 

I recently chaired a meeting with the main stakeholders in the tillage sector. This meeting provided a platform for the stakeholders to express their views and concerns on the challenges they are facing but equally to discuss the opportunities that lie ahead for the industry.  

At that meeting, I outlined that one of my priorities was to provide low-cost more flexible finance and in this regard I was happy to announce on Budget Day plans for a €150 million Agri Cash Flow Support Loan Fund. Developed in conjunction with the Strategic Banking Corporation of Ireland (SBCI), by leveraging EU and Exchequer funding totalling €25m from my Department to deliver a total loan fund of €150m, it will support highly flexible loans for up to six years, for amounts up to €150,000. The interest rate applying is 2.95% and the product will be available to livestock, tillage and horticulture farmers.   Loans to tillage and horticulture farmers will be provided in line with agriculture State Aid de minimis requirements. This loan product is aimed at alleviating the pressures of income volatility and will enable farmers to improve the management of their cash flow and reduce the cost of their short term borrowings. 

As an additional support to cash flow on farms including Tillage farms, I also confirmed that advance payment would be made this year in respect of Basic Payment and Greening Payment scheme. Advance payment commenced on the 17th October, the earliest possible date by which payments can commence under the governing EU Regulations. By the end of last week some €735 million had been paid out to 112,922 farmers and these payments are ongoing. 

I was also pleased to note that the processing of the Areas of Natural Constraints payment scheme is on schedule and payments have already commenced during the third week in September.  It is expected that approx 96,500 will fulfil the scheme eligibility requirements.  

I stressed at the meeting also and want to restate my view that in this changing landscape we need to take a fresh look at our tillage industry, to ensure that it is best positioned to withstand possible future threats and to avail of the new opportunities which may present themselves.