The Minister for Agriculture Food & Marine, Michael Creed TD, has today (Tuesday) announced a total loan fund of €150 million which will support highly flexible loans for up to six years, for amounts up to €150,000, at an interest rate of 2.95%; and available to livestock, tillage and horticulture farmers.

Speaking at the announcement, Minister Creed said:  These loans which form part of a three pillar strategy outlined in my Department’s budget are aimed at strategically alleviating the pressures of income volatility, will enable farmers to improve the management of their cash flow and reduce the cost of their short term borrowings.  The fund is to be provided for through funding of €25 million for a low interest agri-cash flow fund for farmers, to be developed by this Department in partnership with the Strategic Banking Corporation of Ireland (SBCI), including €11 million made available under the EU’s exceptional adjustment aid for milk and other livestock farmers which combined provides leverage for the €150 million fund.

“I am acutely aware that a sustained period of lower commodity prices has put cash flow pressures on farmers in several sectors. In line with the Programme for Partnership Government and the Food Wise strategy, one of my priorities is to support the provision of lower-cost, more flexible finance” Minister Creed said. “ I am pleased therefore to announce that my Department and the SBCI are breaking new ground with an innovative approach to delivering support to farmers, designed to maximise the leverage achieved on the funding available, while effectively addressing the current cash flow challenges”.

The Minister concluded “I will be speaking to the CEOs of the main banks to urge them to provide this loan product.  While I hope that the loans will be available early in the New Year, I would encourage farmers to consider their cash flow and borrowings situation now, and if appropriate, to be prepared to apply for these loans when they become available on a first-come, first-served basis. The loan fund is limited to €150 million; loans need to be allocated by next summer to comply with EU reporting requirements; and demand is likely to be high.”

*Note for Editors:

• €25 million DAFM funding, of which €11 million will come from EU funds for exceptional adjustment aid for milk and other livestock farmers under Commission Delegated Regulation (EU) 2016/1613 of 8 September 2016
• Strategic Banking Corporation of Ireland (SBCI): www.sbci.gov.ie
• Loans will be available to livestock, tillage and horticulture farmers. Eligibility for livestock farmers will be in line with the conditions laid down in the EU exceptional adjustment aid regulation; and loans to non-livestock farmers will be subject to de minimis State Aid requirements.  Normal lending assessment criteria will apply.
• Further details of the loan fund will be provided in early November, when an open call for lending institutions to participate is expected.

To view this PR as a PDF: DAFMPR 131/2016 (pdf 481Kb) 

Date Released: 11 October 2016