asked the Minister for Agriculture the extent to which credit to small farmers is at present subsidised; and the plans, if any, he has in relation to such subsidies.
Written Answers. - Small Farmers Credit Subsidisation.
410.
All State aid for capital investment on farms is channelled through the farm modernisation scheme. Under the scheme, farmers have a choice between accepting capital grants or an interest subsidy in respect of eligible expenditure. The vast majority opt for the capital grants.
Most small farmers are in the "transitional" or "other" category under the scheme and details of the rates of grant and interest subsidy in that category of farmer are as follows:
(a) Farmers who are not eligible for retirement pension under the scheme
|
Land Improvement |
50 per cent capital grant or 9 per cent interest subsidy for a period of up to 15 years. |
|
Fixed Assets |
30 per cent capital grant or 5 per cent interest subsidy for a period of up to 15 years. |
(b) Farmers who are eligible for retirement pension
|
Land Improvement |
40 per cent capital grant or 7 per cent interest subsidy |
|
Fixed Assets |
20 per cent capital grant or 3 per cent interest subsidy |
Apart from the subsidisation of interest under the farm modernisation scheme farmers in certain areas who suffered sheep losses in excess of 10 per cent of their flock in the snowfall in February 1978 and who applied to the Agricultural Credit Corporation by 31 October 1978 are eligible for loans on which my Department are paying a subsidy of 8 per cent leaving the farmer to pay 4¼ per cent.
I have no plans for any further interest subsidies at present.