Kevin O'Keeffe (Cork East, Fianna Fail)
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270. To ask the Minister for Agriculture, Food and the Marine the financial package he will propose for tillage farmers who suffered grain crop losses either at planting or harvesting stage due to adverse weather conditions in the winter of 2015-2016 and autumn 2016. [7909/17]

Michael Creed (Cork North West, Fine Gael)
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The Deputy is aware from my previous reply to him of the position with regard to this issue. I hosted a Tillage Stakeholders Forum last October which consisted of representatives from all sides of this Sector. Following a very productive meeting I subsequently initiated a number of responses to address key issues raised by stakeholders.

As I set out then, one of my priorities has been to address the impact of the change in the sterling exchange rate and lower commodity prices in some sectors, which have caused cash flow difficulties for farmers. So I was pleased to announce the launch of the “Agriculture Cashflow Support Loan Scheme” recently. The Scheme, which was developed in co-operation with the Strategic Banking Corporation of Ireland (SBCI), makes €150 million available to farmers throughout Ireland at interest rates of 2.95%.

Distributed through AIB, Bank of Ireland and Ulster Bank, it provides tillage farmers with a low cost, flexible source of working capital and will allow them to pay down more expensive forms of short-term debt, ensuring the ongoing financial sustainability of viable farming enterprises. The loans are for amounts up to €150,000 for up to six years and are flexible with interest only facilities of up to three years.

As an additional support to cash flow on farms, including Tillage farms, I also confirmed that advance payments would be made in 2016 in respect of the Basic Payment and Greening Payment schemes.

Advance payments commenced on the 17 October last, the earliest possible date by which payments can begin under the governing EU Regulations, with the addition of balancing payments from the 1 December.

To date €1.177 billion has been paid out to 123,454 farmers and payments are ongoing. Payments of €199.6 million have also been made to 93,341 applicants under the Areas of Natural Constraints scheme.

In the changing international economic landscape we need to take a fresh look at our tillage industry to ensure that it is best positioned to withstand future challenges and to avail of new opportunities which may present themselves.

The Forum is therefore an opportunity to explore and build such opportunities, as well as addressing the challenges. This Forum is again meeting today and provides an opportunity for all to work together to evaluate further measures for the long term sustainability of the tillage sector.