Charlie McConalogue (Donegal, Fianna Fail)
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36. To ask the Minister for Agriculture, Food and the Marine the timeframe to introduce a crisis aid fund to tillage farmers that had their crop destroyed due to severe weather in 2016; and if he will make a statement on the matter. [28154/17]

Michael Creed (Cork North West, Fine Gael)
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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”and last month I welcomed the release of preliminary information from the Strategic Banking Corporation of Ireland (SBCI) regarding its uptake. The Scheme, which was developed by my Department in co-operation with SBCI, makes €150 million available to farmers at interest rates of 2.95%. Distributed and administered through AIB, Bank of Ireland and Ulster Bank, the Scheme provides farmers with a low cost, flexible source of working capital and allows them to pay down more expensive forms of short-term debt, ensuring the ongoing financial sustainability of viable farming enterprises. The SBCI reported that €60.2m has been drawn down by farmers to the end of April. The average loan size is €32,000, with more than half the loans being advanced for terms of four years or more. SBCI report that some 8% of the loans to date have been drawn down by the tillage sector which is in line with borrowing levels for the sector as a proportion of total agricultural borrowings. The banks advise that all of the remaining €150m is committed and is in the process of being 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 access to finance issues relating to the agri-food sector. I have asked the banks to respond positively to the demand that has been demonstrated 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.

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 is Friday 30 June 2017.  A further Tranche will open immediately on the 1 July with a closing date of the 6 October 2017.

As an additional support to cash flow on farms, including Tillage farms, up to €1.186billionhas been paid out under the Basic Payment Scheme to 124,112 farmers with payments ongoing. Payments of €202.34million have also been made to 94,552 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 February meeting 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.