Dáil Éireann Debate, Thursday - 19 January 2017
256. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine when the low-cost agri-loan fund will open for applications; the length of time for which the fund will remain open for applications; and if he will make a statement on the matter. [2436/17]
View answerOne of my priorities has been to address the impact on farmers of the sustained period of lower commodity prices, which has caused cash flow difficulties for farmers in several sectors. The "Agriculture Cashflow Support Loan Scheme" was developed by my Department in co-operation with the Strategic Banking Corporation of Ireland (SBCI). It will provide farmers with a low cost, flexible source of working capital and will allow them to pay down more expensive forms of short-term debt, ensuring the ongoing financial sustainability of viable farming enterprises. The SBCI is aiming to bring the loans to market by the end of January and I hope to make an announcement in this regard shortly.
This innovative loan Scheme will make €150 million available to farmers throughout Ireland at low-cost interest rates of 2.95%. This is supported by €25 million being provided by my Department, including €11 million in EU exceptional adjustment aid. In order to comply with requirements attached to the EU element of funding, it is envisaged that the Scheme will be available until late summer 2017. However there is considerable interest in the Scheme and the loans will be dispersed on a "first come, first served" basis. I am encouraging farmers to consider their cash flow and borrowings situation now, and if appropriate to their circumstances, to be prepared to apply for these loans when they become available.
