The low-cost loan scheme promised to farmers in the last budget continues to suffer from delays as banks have yet to be presented with details of the scheme.

Some €25m was set aside as seed money for a loan fund in Budget 2018, with the expectation that farmers would be able to draw down funds this year.

The Department of Agriculture and the Strategic Banking Corporation of Ireland (SBCI) are leading the charge on developing the loan scheme, but almost 12 months after the budget announcement, banks said that talks about the scheme are still only at the “early stages.”

The Irish Farmers Journal understands that the banks involved in the last €150m loan scheme (Ulster Bank, AIB and Bank of Ireland) have yet to be presented with concrete details of a scheme.

Funding

“The detail of such a scheme which will dictate the interest rate and total amount of funding has yet to be agreed,” a spokesperson for Bank of Ireland said.

“Bank of Ireland will look to engage in any scheme that is developed by the SBCI and pass on any financial advantage accrued through such a partnership to our customers.”

These comments add to concerns voiced by the IFA, that farmers might not be able to draw down loans until early next year.

Farm organisations have called for the immediate roll-out of loans to help ease financial pressure as farmers count the cost of two extreme weather events in one year.

However, the Department has indicated that the funds secured through the scheme should be used exclusively for capital expenditure.

When pressed for details of the scheme, the SBCI stated that details “are currently being worked out with key stakeholders and these will be announced in due course”.

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