Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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667. To ask the Minister for Agriculture, Food and the Marine when he will open the Strategic Banking Corporation of Ireland, SBCI, agricultural fund to farmers; the operational breakdown of this scheme; and if he will make a statement on the matter. [37522/16]

Michael Creed (Cork North West, Fine Gael)
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I announced earlier this month that the Strategic Banking Corporation of Ireland (SBCI) had invited financial institutions to take part in the "Agriculture Cashflow Support Loan Scheme". This Scheme will enable farmers to improve the management of their cash flow and reduce the cost of their short-term borrowings.  This loan scheme forms part of a “three pillar strategy” in response to income volatility, which I announced as part of the recent Budget.  Along with tax measures and farm payments, it will alleviate some of the pressures being caused by the current market difficulties.

The SBCI is targeting that the loans will be available in the market by the end of January 2017. I am encouraging 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.

The Scheme is being developed by my Department in partnership with the SBCI. The Department’s funding of €25 million includes €11 million made available under the EU’s exceptional adjustment aid for milk and other livestock farmers and €14 million in national funding. This provides leverage for the €150 million scheme, which will support highly flexible loans for up to six years, for amounts up to €150,000, at an interest rate of 2.95%.