Charlie McConalogue (Donegal, Fianna Fail)
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199. To ask the Minister for Agriculture, Food and the Marine his plans to introduce crisis aid funding to tillage farmers that had their crops destroyed by the severe weather in 2016; and if he will make a statement on the matter. [26390/17]

Charlie McConalogue (Donegal, Fianna Fail)
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202. To ask the Minister for Agriculture, Food and the Marine if he has examined CAP regulation 1305/2013 that permits member states the opportunity to support, for instance, investments restoring agricultural production damaged by natural disasters (details supplied). [26393/17]

Michael Creed (Cork North West, Fine Gael)
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I propose to take Questions Nos. 199 and 202 together.

I refer again to your further questions in relation to the issue of compensation for tillage farmers and I wish to re-state to the Deputy that I hosted a Tillage Stakeholders Forum on the 16 February, following on from the first one in October 2016, which on both occasions consisted of representatives from all sides of this Sector. Addressing the most recent Forum, I took the opportunity to highlight that 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.

Therefore I was pleased to facilitate the “Agriculture Cashflow Support Loan Scheme”, which was developed by my Department in co-operation with the Strategic Banking Corporation of Ireland (SBCI) and 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.  Although no official returns have been made to my Department as yet, preliminary information from the SBCI shows that some 8% of the loans to date have been drawn down by the tillage sector. The banks have confirmed that they have applications up to the amounts available under the Scheme.

There may be some residual availability but this will only emerge as applications are processed and loans drawn down. 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.

I have met with the Chief Executives of the participating banks to discuss this and other issues relating to access to finance in the agri-food sector. I have asked the banks to respond positively to this demand by reducing interest rates and providing more flexible terms for cash flow loans in the future. Implementation of this Scheme is subject to the provisions of Commission Regulation (EU) No 1408/2013 (de minimis aid in the agricultural production sector). Support provided under the de minimis regulation complies with State Aid rules in the agriculture sector and does not require prior approval by the EU Commission.

Specifically in referring to Council Regulation No. 1305/2013 relating to the funding of EU rural development programming 2014 – 2020, support under this regulation refers to damage caused by adverse climatic events and is directed towards restoration of the production potential of lands affected, rather than support for specific losses.

However, under this regulation, I introduced the Tillage Investment Scheme under TAMS II which opened for online applications on the 8 March 2017. The specific areas of investment include Minimum Disturbance Tillage Equipment, Sprayers, Rain Water Harvesting, Grain Storage and Grain dryers. This Tillage Scheme is the latest of the Targeted Modernisation Schemes (TAMS II) to be launched under the Rural Development Programme 2014-2020. The Scheme is co-funded by the European Agricultural Fund for Rural Development (EAFRD). All applications must be made on-line, either by the farmer or by an adviser authorised to act on his or her behalf.  The closing date for applications under the first tranche of the new scheme will be Friday 30 June 2017. 

As an additional support to cash flow on farms, including Tillage farms, up to €1.186 billion has been paid out under the Basic Payment Scheme to 124,112 farmers with payments ongoing. Payments of €202.16 millionhave also been made to 94,456 applicants under the Areas of Natural Constraints Scheme. 

I can also confirm that a wide ranging discussion took place among all the stakeholders who attended the recent session of the Tillage Forum, including on the issue of crop losses as a result of the poor harvest conditions of last autumn. My officials have since then had some additional meetings with stakeholders and I will consider further the outcome of those deliberations.