Huge sectoral disparities have emerged in the low-interest loan scheme. Dairy and beef farmers dominate, each accounting for over 40% of the €60m drawn down so far. All money has now been accounted for, with a further €90m available in the scheme, which will benefit around 4,000 farmers.

To date, only 65 sheep farmers and 90 tillage farmers have drawn down money. In fact, sheep farmers have obtained little over €1m to date, with the €17,000 average loan by far the lowest among the sectors. The average loan for tillage farmers is high at over €50,000. The six horticulture farmers who were successful in their applications have borrowed over €100,000 each. Only seven pig farmers are involved in the scheme.

Some €60.2m has been drawn down by 1,859 farmers to date under the Agriculture Cashflow Support Loan Scheme, the Strategic Banking Corporation of Ireland (SBCI) has confirmed.

The average loan size is €32,000, with more than half the loans being advanced for terms of four years or more, it said. The banks advise that all of the remaining €150m is committed and is in the process of being drawn down. Based on progress to date, the SBCI anticipates that in total approximately 4,000 farmers will benefit from the scheme.

Minister for Agriculture Michael Creed welcomed the release of preliminary information regarding uptake on the loan scheme, which was developed by the Department of Agriculture in cooperation with the SBCI, making €150m available to farmers at interest rates of 2.95%.

Distributed and administered through AIB, Bank of Ireland and Ulster Bank, the scheme provides farmers with a low-cost, flexible source of working capital, allowing them to pay down more expensive forms of short-term debt, ensuring the ongoing financial sustainability of viable farming enterprises.

The minister said that one of his priorities has been to address the impact of the change in the sterling exchange rate and lower commodity prices in some agriculture sectors.

“I am pleased at the very positive reaction by farmers to the scheme, which has proved that significant demand exists for low-cost, flexible finance,” he said.

“I am currently meeting with the chief executives of the participating banks to discuss this and other access to finance issues relating to the agri-food sector. I am asking the banks to respond positively to the demand that has been demonstrated by reducing interest rates and providing more flexible terms for cashflow loans in the future.”

Regional breakdown

The money has been distributed reasonably equally throughout the country. The southwest accounted for 22% (€13.3m), with the mid-east lowest on €5.8m. The border, midlands and west region accounted for one third of all the money drawn down so far.

Call for further EIB funds

IFA grain chair Liam Dunne wants Minister Creed to unlock more European Investment Bank (EIB) funding for Irish farmers. Reacting to the preliminary results from the scheme, Dunne said that the quick draw-down illustrates the urgent need for accessible affordable working capital and small-scale investment funding.

“Of course it’s disappointing that more tillage farmers, and indeed all farmers didn’t get approval for funding for the SCBI low-interest loan scheme,” said Dunne. “We on the grain committee raised the issue with [the minister] on our very first meeting after he took office.

“Tillage farms are struggling for cashflow after four years of poor prices, and Irish banks are both slow to extend necessary credit lines and are charging way too much.”