Carol Nolan (Offaly, Sinn Fein)
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942. To ask the Minister for Agriculture, Food and the Marine the progress that has been made in providing compensation to the 370 tillage farmers across the State that lost crops in the heavy flooding in 2016; and if he will make a statement on the matter. [33740/17]

Michael Creed (Cork North West, Fine Gael)
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Firstly I wish to acknowledge that the Tillage farmers have come through a very difficult period with poor market returns and very challenging weather conditions during the 2016 harvest. Following the decision by the IFA to end their occupation of my Department's Headquarters in Dublin I, along with my Department Officials, met with the IFA on Wednesday 12 July to discuss all aspects of a support measure for those cereal growers worst affected by the 2016 harvest conditions. These discussions are continuing with a further meeting planned.

However, as I stated at yesterday's meeting we must ensure that this measure covers as many as possible of those growers that need the help the most, and it must be done within the confines of the allocated budget. While some growers undoubtedly lost more that others, both in terms of area but also as a proportion of their harvest, we have to be very mindful that more support for some farmers would mean less for others. The final shape of the measure must find the correct balance in this regard.

I wish to confirm to the Deputy my commitment and support to the Tillage sector through 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 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, including tillage 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 agrifood 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.

As a further support to tillage farmers I also introduced the Tillage Investment Scheme under TAMS II which opened for online applications on 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 was Friday 30 June 2017. The second tranche is currently open. There was a significant level of interest in investments under this measure with a total number of 490 applications received in the first tranche. The GLAS scheme has seen a significant uptake, with measures such as green cover, minimum tillage and wild bird cover proving popular with the tillage sector.

As an additional support to cash flow on farms, including Tillage farms, up to €1.187 billion has been paid out under the Basic Payment Scheme to 124,222 farmers with payments ongoing. Payments of €202.4 millionhave also been made to 94,605 applicants under the Areas of Natural Constraints Scheme.