asked the Minister for Agriculture if there are any funds still available at low interest rates for members of the farming community.
Written Answers. - Low Interest Rates.
38.
At present there are two low interest rate schemes available to members of the farming community. The £200 million exchange rate guarantee scheme for farmers and private peat producers, enables participants to convert part of their existing term debt and working capital requirements into low interest loans. The interest rate is in the region of 5.5 per cent, but varies depending on the rate at which EMS currencies can be borrowed abroad. Virtually all of the original sum has now been allocated but some limited funds are still available; in addition, since the scheme is operated on a revolving fund basis, some further lending will arise from loans being paid back and then reallocated.
The exchange rate guarantee scheme for new agricultural development purposes, of £35 million, offers loans at interest rates in the region of 9.5 per cent; the rate depending on the cost at which EMS currencies can be borrowed abroad. The purpose of this scheme is to encourage diversification into non-surplus products such as sheep, protein crops and vegetables; farming activities which although non-land using, can supplement income and provide employment for farm families; diversification into "minority" activities, e.g. horses (hunters and ponies); deer farming, etc. Two-thirds of the funds covered under this scheme are still available for on-lending to farmers.
Both of these exchange rate guarantee schemes are administered by the Associated Banks and the ACC. Application forms and copies of the terms and conditions of the schemes are available in the branches of these lending institutions.