Peter Burke (Longford-Westmeath, Fine Gael)
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286. To ask the Minister for Agriculture, Food and the Marine the position regarding the low cost loan scheme for farmers as outlined in budget 2017; the opening date for applications; the type of loans provided; and the purpose these loans will serve. [34137/16]

Michael Creed (Cork North West, Fine Gael)
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I am aware that the sustained period of lower commodity prices has led to cash flow difficulties for farmers in several sectors. One of my priorities is to support the provision of lower-cost flexible finance so I was pleased to announce plans for a €150 million fund for 'Agri Cash Flow Support' as part of the recent Budget.

The provision of €11.1 million in EU funding for milk and other livestock farmers under the exceptional adjustment aid package, will be supplemented by €14 million in national funding from my Department. The €25 million total will enable the Strategic Banking Corporation of Ireland (SBCI) to leverage a fund of €150 million, thereby maximising the support for farmers from the available public funding. The extra national funding will enable loans to be made available to non-livestock sectors, including tillage and horticulture, under “de minimis” State Aid provisions.

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%, which 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. The 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.