IFA dairy chair Stephen Arthur said the availability of easy-to-access and affordable bank finance will be needed for dairy farmers seeking to invest in additional nutrient storage on their farms.

"The provision of proper grant aid at a rate of 70% is critical to assist dairy farmers looking to invest in additional nutrient storage due to potential increased storage requirements in the coming years,” he said.

He outlined that the Minister for Agriculture and the Department must ensure banks are providing affordable and easy-to-access finance to build slurry tanks, or it won’t happen.

Derogation

The Government’s ‘Water and Agriculture’ document published this week sets out what will be done to support a renewal of the nitrates derogation.

Investments in nutrient storage will qualify for the green discounting rate under the Strategic Banking Corporation of Ireland (SBCI) Growth and Sustainability Loan Scheme.

“Confirmation that loans for nutrient storage will qualify as green investments as part of SBCI funding in a positive development. But this will only be of use if farmers can actually get access to this money quickly without having to provide reams of paperwork to get approval,” Stephen Arthur said.

He believes the Minister needs to make sure the banks give a commitment to supporting the sector in making investments, otherwise, this plan will not succeed.