Dáil Éireann Debate, Thursday - 23 February 2017
367. Deputy John Brassil asked the Minister for Agriculture, Food and the Marine if the low cost loan scheme can be extended to include contractors involved in the provision of cutting of silage harvesting services and so on; and if he will make a statement on the matter. [9292/17]
Amharc ar fhreagraI was pleased to announce the launch of the “Agriculture Cashflow Support Loan Scheme” on 31st January. One of my priorities has been to address the impact of the change in the sterling exchange rate and lower commodity prices in some sectors, which have caused cash flow difficulties for farmers. The Scheme, which was developed in co-operation with the Strategic Banking Corporation of Ireland (SBCI), makes €150 million available to farmers throughout Ireland at interest rates of 2.95%. Distributed through AIB, Bank of Ireland and Ulster Bank, the Scheme provides 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.
My Department is contributing €25 million in total. This includes €11.1 million from the EU’s ‘exceptional adjustment aid for milk and other livestock farmers’ and €14 million in national funding. SBCI uses the €25 million to leverage the fund, i.e. the other €125 million is being provided by the ‘finance providers’ (i.e. the banks). SBCI are not providing funding, but along with European Investment Fund’s COSME (the EU programme for the Competitiveness of Enterprises and SMEs) is providing the guarantee required to underpin the loan’s flexibility and lower the cost of the loans.
The loans are available to all those involved in primary agricultural production, i.e. livestock farmers, tillage farmers, horticulture producers (including mushroom growers) and others (including poultry producers). To satisfy the requirements of the EU aid package, applicants also need to satisfy at least one of the following eligibility criteria:
- Application of environmental and climate friendly production methods
- Implementation of quality schemes or projects aiming at promoting quality and value added
- Implementation of cooperation projects
- Training in financial instruments and risk management tools.
Contracting services of any kind are not included.
