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Farmers are likely to benefit from a second low-interest loan scheme as part of next week’s budget.
Following the huge interest in the SBCI Agricultural Cashflow Support Loan Scheme announced in Budget 2017, Minister for Finance Paschal Donohoe is expected to pledge funds to leverage money at low interest rates that farmers can access through the pillar banks.
About 5,000 farmers availed of the previous scheme, which saw €150m loaned at 2.95%.
The scheme was massively oversubscribed, with the money snapped up in a couple of weeks.
The IFA is looking for a €500m scheme this year.
Minister for Agriculture Michael Creed, whose initiative it was to use the €11m of crisis funds from Brussels last year as the seed capital for the scheme, augmented by a further €14m of Exchequer funding, is sure to be advocating a follow-up.
Taoiseach alludes
In response to a question by the Irish Farmers Journal at this year's National Ploughing Championships, An Taoiseach Leo Varadkar said a new low-cost loan scheme is "absolutely something that we are looking at".
An Irish Farmers Journal / Red C poll of 1,000 farmers last month showed that two-thirds of farmers surveyed are in debt to at least one creditor or supplier
Merchants, contractors and vets carrying lengthy farm debts
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