Low-cost agri loans to be available within months - Minister
The Government’s new low-cost loan scheme for farmers will be available in early January 2017, the Minister for Agriculture Michael Creed has said.
The Minister for Finance Michael Noonan announced on Budget day plans for a €150m agriculture cashflow support fund.
The fund will support highly flexible loans of up to six years in duration for amounts up to €150,000 at an interest rate of 2.95%.
It will be available to livestock, tillage and horticulture farmers. The proposed interest rate will represent a significant saving to farmers when compared with other forms of finance currently available.
In the Dail recently the Minister for Agriculture said he is inviting all farmers to avail of this option if it is appropriate.
“Let it be clear that I am not encouraging farmers to borrow money,” he stressed.
“Whether the answer is to refinance existing loans will have to be looked at on a case-by-case basis. If there is a penalty for early payment of a loan, this may not be appropriate.
“If a farmer is making investments under TAMS next year, it might be appropriate If a farmer has merchant credit, it might be more appropriate.