I can reassure the Deputy that Irish farmers are not being excluded from any scheme being offered by EU or the European Investment Bank (EIB).
I welcomed the announcement in April of a €1 billion loan programme by Commissioner Phil Hogan and EIB Vice-President Andrew McDowell, aimed at increasing access to funding for EU farmers, especially young farmers. This programme allows Member States and financial institutions operating across the EU to engage with the Commission and the EIB to develop schemes tailored to their own individual needs and requirements.
Ireland, through my Department and the Department of Business, Enterprise and Innovation, in partnership with the Department of Finance and the SBCI, has already engaged with the EIB & the European Investment Fund (EIF) to develop the Future Growth Loan Scheme. It is being delivered through participating finance providers nationally and will make up to €300 million of investment loans available to eligible Irish businesses, including farmers and the agrifood & seafood sectors.
The loans are competitively priced (an initial maximum loan interest rate of 4.5% for loans less than €250,000), will be for terms of 8-10 years and will support strategic long-term investment in a post-Brexit environment. A minimum loan amount of €100,000 applies up to a maximum of €3,000,000 per applicant. However, considering the needs of Irish farmers, I have negotiated a specific minimum of €50,000 for them.
This is a financial product that was previously unavailable in Ireland, hence the involvement of the various public bodies to bring it to market. The unique characteristic of the Scheme is that loans up to €500,000 are unsecured making it a viable source of finance for young and new entrant farmers, especially the cohort who do not have high levels of security. It will also serve smaller-scale farmers, who often do not have the leverage to negotiate for more favourable terms with their banking institution.
Food companies have identified long-term investment finance of up to ten years as a critical need which is currently unavailable in Ireland. I am happy that the Government have been able to deliver this product and its effects will be felt all along the food production chain from primary producer to processor.
The Scheme which launched earlier this year has been open for loan eligibility applications through the SBCI website since 17th April and there has been a good level of demand from farmers.
One of my priorities is to improve access to finance for the agrifood sector. I look forward to continuing to work nationally, with the Commission, with the EIB/EIF and others to ensure that Irish farmers have access to appropriate financial products to enable them to sustain and develop their individual enterprises.
