Peter Cleere (Carlow-Kilkenny, Fianna Fail)
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945. To ask the Minister for Agriculture, Food and the Marine the plans he has to introduce low interest loans for young farmers; and if he will make a statement on the matter. [24445/25]

Martin Heydon (Kildare South, Fine Gael)
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It is one of my priorities is to ensure adequate availability and access to long-term investment finance for farmers, including young farmers. My Department works closely with the Department of Enterprise, Trade and Employment, the Department of Finance and the Strategic Banking Corporation of Ireland (SBCI) to provide access to finance supports to small and medium businesses (SMEs) in Ireland, including farmers, fishers, foresters and food businesses. Access to finance is vital in helping businesses to invest, grow and to deal with economic challenges.

The €500m Growth and Sustainability Loan Scheme (GSLS) is a long-term low-cost scheme that enables Irish SMEs and Small Mid-Caps invest in the growth and resilience of their business and contribute to climate action and environmental sustainability. 70% of the overall funding is allocated for strategic investments with a view to increasing productivity and competitiveness, underpinning future business sustainability and growth. A minimum of 30% of the lending volume is targeted towards Climate Adaptation and Environmental Sustainability purposes, with the aim of helping SMEs to invest in sustainability and energy efficiency.

The GSLS offers loans from €25,000 up to €3m for terms of between 7 and 10 years. Loans up to €500,000 are available unsecured with interest and capital moratoria of up to 90 days permitted. Loans are available to 30 June 2026 or until the scheme is fully subscribed.

The availability of unsecured loans up to €500,000 under GSLS make them a particularly good source of finance for young farmers, especially those with low or no available security. It also serves smaller-scale farmers and new entrants to farming, who often do not have the leverage to negotiate more favourable terms with their bank.

Liquidity and access to finance is frequently a challenge for primary producers, including farmers, foresters and fishers, who are subject to income volatility and are vulnerable to weather events. In addition to Government-backed schemes, I and my Department meet and liaise with the main banks regularly on access to finance issues relating to the agri-food sector, including the need for banks and financial institutions to assist and support generational renewal.

Last October, an independent Commission on Generational Renewal in Farming was established. The Commission is adopting an objective, evidence-based approach to examining all the factors involved in generational renewal and I expect that examination will include access to finance. The Commission’s report is expected by the end of June.