Tony McCormack (Offaly, Fianna Fail)
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139. To ask the Minister for Agriculture, Food and the Marine if he has engaged with the EU on the proposed €3 billion fund for young farmers; the way in which he will ensure Irish farmers benefit; and if he will make a statement on the matter. [25564/25]

Martin Heydon (Kildare South, Fine Gael)
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Access to finance is vital in helping businesses to invest, grow and to deal with economic challenges. It is one of my priorities to ensure access to long-term investment finance for farmers, including young farmers.

My Department works closely with the Department of Enterprise, Trade and Employment (DETE), the Department of Finance (DoF) 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.

As the Deputy is aware, last December, the European Investment Bank (EIB) Group announced €3 billion in loans for agriculture and other bioeconomy activities across Europe, with a focus on young farmers, gender equality and green investments. However, prior to this announcement, my Department has been engaged with the EIB in relation to funding for the sector, in collaboration with DETE, DoF and SBCI.

In 2019, the Future Growth Loan Scheme (FGLS) supporting strategic long-term capital investment by SMEs, farmers and fishermen was developed with the EIB Group, and made €300 million of investment loans available to eligible Irish businesses, including farmers and the agri-food & seafood sectors. It was extended in 2020 by an additional €500 million. It closed in mid-2022, with 3,507 loans to the value of €767.8m sanctioned, 1,288 (37%) of which were to farmers with a total sanction amount of €154.6m (20%), 290 (8%) to food companies for €75.8m (10%) and 20 (1%) to fishers for €6.7m (1%).

Following the high level of demand for the FGLS, my Department, DETE, DoF and SBCI entered negotiations with the EIB on a successor scheme. The €500m Growth and Sustainability Loan Scheme (GSLS), launched in September 2023, is a long-term low-cost scheme that enables Irish SMEs 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. As of 12th May 2025, 1,792 loans to the value of €398.5m have been sanctioned, 573 (32%) of which are to farmers, fishers and foresters, with a total sanction amount of €63.4m (16%) and 55 (3%) to food production for €16.5m (4%).

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.

My Department will continue to engage with the SBCI and the EIB on suitable financing for the agriculture sector.