Written answers

Wednesday, 24 February 2021

Department of Agriculture, Food and the Marine

Covid-19 Pandemic Supports

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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1076. To ask the Minister for Agriculture, Food and the Marine if a funding stream is available to a beef farmer (details supplied) who is under financial pressure due to Covid-19; and if he will make a statement on the matter. [9934/21]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I am acutely aware of the pressures arising for beef farmers in the context of the ongoing COVID-19 crisis. My Department has worked to ensure that business and services to farmers can continue, keeping food and other processing facilities operational, and ensuring that payments and commercial activities that are necessary to protect farm incomes have continued. I also secured €85 million in Budget 2021 for specific supports for sustainable beef farming this year.

The Government has introduced a number of measures to support all businesses impacted by COVID-19.

The COVID-19 Credit Guarantee Scheme (CCGS) was established by the Department of Enterprise Trade & Employment, with input from my Department to ensure that primary producers were included.

Administered by the Strategic Banking Corporation of Ireland (SBCI), the CCGS provides an 80% State-backed guarantee on bank lending to SMEs and has a capacity of up to €2bn to facilitate the provision of Eligible Financial Products, including working capital finance, to COVID-19 impacted SMEs and Small Mid-Caps. Under the Scheme, SMEs, including farmers and fishers, can go directly to the banks where the guarantee can be used for a wide range of lending products between €10,000 and €1 million, for terms between three months and 5.5 years.

In addition, the COVID-19 Business Loan from Microfinance Ireland supports small businesses including farmers through the current challenges. Loans from €5,000 to €25,000 may be used for working capital and required business changes as a result of COVID-19 with loan terms up to three years. Terms include a six months interest free and repayment free moratorium.

I engage regularly with the main banks on the specific liquidity and financing needs of farmers, fishers and agrifood businesses and have stressed the need for the banks to support and work with their customers through this challenging period. All the banks responded to the economic disruption arising from the pandemic with announcements of flexibility for their customers. The advice is that farmers should engage with their bank at an early stage to discuss emerging cashflow issues.

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