Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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521. To ask the Minister for Agriculture, Food and the Marine if a scheme (details supplied) is coming on stream for dairy farmers in counties Cavan and Monaghan; and if he will make a statement on the matter. [21522/17]

Michael Creed (Cork North West, Fine Gael)
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The scheme referenced is particular to the UK only and is part of their implementation of the exceptional aid measures implemented by the EU Commission in 2016. As part of this package, Member States were given €350 million to implement schemes which were tailored to meet their needs nationally.  This was to ensure that the funds were put to the most effective use possible in each State. Ireland was allocated €11.1m under this aid package.

My Department, after consultation with all stakeholders in the sector, has used our €11.1 million allocation of funds, to part finance the Agri Cashflow Support Loan Scheme. Using national funds, I increased the amount provided to implement the scheme to €25 million.

This resulted in a low-cost credit scheme with the Strategic Banking Corporation of Ireland (SBCI) which has made €150 million available to farmers at interest rates of 2.95%. The Scheme provides farmers with a low cost, flexible source of working capital, allowing them to pay down more expensive forms of short-term debt, ensuring the on-going financial sustainability of viable farming enterprises.

The SBCI has said that €60.2m has been drawn down by farmers to date.  The average loan size is €32,000, with more than half the loans being advanced for terms of four years or more. 42% of loan value has been provided to dairy enterprises across the country. I am pleased at the very positive reaction by farmers to the Scheme, which has proved that significant demand exists for low cost flexible finance.

The banks advise that all of the remaining €150m is committed and is in the process of being drawn down.  Based on progress to date, SBCI anticipate that in total approximately 4,000 farmers will benefit from the scheme.