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 | Details | Take up (as of 22 July 2019) |
Agriculture Cash Flow Support Loan Scheme | - 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. | - Approximately 4,246 applications to the value of €145m - Average loan size of €34,127 - average loan period of 41 months |
Brexit Loan Scheme | - 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 | - 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 |
Future Growth Loan Scheme | - 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 | - 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 |
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.