Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

1002. To ask the Minister for Agriculture, Food and the Marine his plans to introduce low cost credit facilities for farmers facing financial difficulties; when the scheme will be introduced; and if he will make a statement on the matter. [36827/18]

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

One of my priorities is to improve access to finance for the agri-food sector. I announced in Budget 2018 that my Department is considering the development of potential Brexit response loan schemes for farmers, fishermen and for longer-term capital financing for food businesses. These schemes are developed and delivered in cooperation with the Strategic Banking Corporation of Ireland and take time to develop and operationalise. Consideration and discussions with the Department of Business, Enterprise and Innovation and the Department of Finance are ongoing on a long-term investment scheme and an announcement in this regard is expected to be made shortly.

While continuing to explore additional funding mechanisms to address gaps in the market, I also liaise with the main banks on access to finance issues relating to the agri-food sector. I have had ongoing engagement with the banks on the cash flow pressures arising from the effects of the weather on grazing and fodder stocks and I welcome that they are following through on their commitment to support the sector. The delivery of last year’s Agriculture Cash Flow Loan Scheme is acting as a catalyst to encourage financial institutions to improve and develop new loan products for the sector. A recently announced initiative by one of the main banks mirrors the Agriculture Cashflow Support Loan Scheme in offering a discounted interest rate with extended and flexible repayment terms. The ‘Milk Flex’ loan product developed by the Irish Strategic Investment Fund, with dairy co-op and private banking participation, is another good example of innovation in this regard.

I know that many farmers will be relying heavily on co-op and merchant credit to navigate through the current situation. Therefore, I have also welcomed recent initiatives by co-ops in relation to credit facilities for their suppliers.