I have introduced a number of supports to assist the agri-food sector in preparing to address the challenges posed by Brexit. These include:
Title of Scheme
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Details
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Take up (as of 22 July 2019)
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Agriculture Cash Flow Support Loan Scheme
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- Developed in co-operation with the Strategic Banking Corporation of Ireland (SBCI)
- Funding of €150m
- cash flow support facility, providing farmers with a low cost, flexible source of working capital
- loan amounts up to €150,000 for up to six years at an interest rate of 2.95%
- scheme closed.
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- Approximately 4,246 applications to the value of €145m
- Average loan size of €34,127
- average loan period of 41 months
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Brexit Loan Scheme
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- Joint DAFM/DBEI/Dept. of Finance/SBCI Scheme
- Funding of €300m
- Operable 28 March 2018 to 31 March 2020
- Loans of €25,000 to €1,500,000 per eligible enterprise
- Maximum interest rate of 4%, ranging from 1 year to 3 years,
- At least 40% available to food businesses
- Unsecured loans up to €500,000
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- 628 applications approved
- 160 loans progressed to sanction at bank level
- total value of sanctioned loans is €35.7m
- 29 (with a value of €8.2m) relate to food businesses
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Future Growth Loan Scheme
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- Joint DBEI/DAFM Scheme
- Funding of €300m available since 17 Apr 2019
- Available to Irish businesses, including farmers and the agri-food & seafood sectors
- Applications submitted through the Strategic Banking Corporation of Ireland (SBCI) since 17th April 2019
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- 619 applications approved
- 53 loans pogressed to sanction at bank level
- total value of sanctioned loans is €7.9m
- 39 (with a value of €4.5m) relate to farmers and to one food business worth €280,000
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In addition to the above schemes, my Department, in response to Brexit, has also initiated:
- a market prioritisation exercise undertaken by Bord Bia to identify priority markets across all food and drinks categories;
- tailored supports and analysis are being provided to food companies through Bord Bia’s Brexit Barometer; and
- an intensified series of trade missions to develop and grow new markets.
I also have had on-going discussions with Commissioner Hogan regarding the potential impact of a disorderly Brexit. The Commission have already made €50m available to Irish beef farmers as a response to market pressures, and this can be matched by national funding. I expect to be rolling out a support scheme with this funding in the very near future. I have also stressed the need for the Commission to be ready to deploy a further range of measures to mitigate the potential impacts on the agri-food and fisheries sector. Avoiding a no-deal Brexit continues to be the Government’s overriding policy priority.
And, of course, our practical preparations for all potential scenarios, including a no-deal Brexit, continue to be progressed and refined through the whole-of-Government coordination structures that have been in place for some time.