Dáil Éireann Debate, Tuesday - 11 February 2014
489. Deputy Pearse Doherty asked the Minister for Agriculture, Food and the Marine the credit options or State supports available to a farmer wishing to invest but unable to access funding through the banks. [6316/14]
View answerAs far as credit availability to farmers is concerned, I have recently met the CEOs of the three main banks, and all have emphasised that the banks are willing and anxious to lend to farmers seeking to expand. If a farmer has had an application for credit refused or reduced and feels that the bank's decision is unjustified, he/she can seek to have the issue reviewed by the Credit Review Office.
Depending on the type of activity proposed, the enterprise may be eligible to access credit through either Microfinance Ireland or the SME Credit Guarantee Scheme, two schemes introduced by the Minister for Jobs, Enterprise and Innovation. The assistance provided through both of these initiatives, like many Government-backed business support activities, is regarded as State Aid and governed according to the European Commission's De Minimis State Aid rules. Therefore primary agricultural production (i.e. farming) is not included in these Schemes. However, investment for the purpose of value-adding downstream processing and marketing activities is regarded as being "industrial" and so may be eligible for the Microfinance and SME Credit Guarantee Schemes.
In the case of State support for on-farm investments, the final tranches under the TAMS Dairy Equipment, Rainwater Harvesting and Sheep Fencing/Handling Schemes closed at end-December 2013 under the 2007-2013 Rural Development Programme and my Department is currently processing the applications received.
A consultation paper in relation to the 2014-2020 Rural Development Programme has also been prepared which sets out a number of priorities in the case of on-farm investment schemes under the new Programme, including further support to encourage investment in the dairy sector due to the forthcoming abolition of milk quotas and an enhanced scheme of grant-aid for young farmers with a special grant-rate of 60 per cent. The dates of introduction of these new schemes will be dependent on a number of factors, including the requirement to obtain EU Commission approval for the Programme concerned.
