The Irish Creamery Milk Suppliers’ Association (ICMSA) is encouraging farmers to avail of the Brexit Impact Loan Scheme as a way to offset rising farm input costs.

The organisation says that, against a background of “rising costs of production and ongoing investment requirements in terms of farm modernisation and regulatory compliance” the demand for farm finance in 2022 is likely to be high.

According the ICMSA Farm Business Committee chairperson Shane O’Loughlin, it is “just essential” that low cost sources are available to farmers.

O’Loughlin is advising farmers seeking farm finance to consider applying for the Brexit Impact Loan Scheme available from the Strategic Banking Corporation of Ireland (SBCI).

“With a current interest rate of less than 3%, the cost of finance is very competitive and farmers are an eligible category to apply for this scheme,” O’Loughlin highlighted.

“The scheme terms and conditions state that the funding can be used for working capital or farm investment. The terms available vary between one and up to six years, with unsecured loans up to €500,000 available and up to €1.5 million secured,” he noted.

The ICMSA farm business chair also explained that the scheme allows for the refinancing of existing debt subject to that being a maximum of 30% of the new loan amount.

“Given the interest rates currently available to farmers and the cripplingly high cost of inputs at the start of 2022, low cost finance is essential for farmers.”

According to O’Loughlin, the scheme is an “attractive option”.

“[We] think farmers should consider it if they require finance and the re-financing element is also attractive as a cost saving measure,” he concluded.

Minister to flag farmers’ costs at EU

Also on farmer costs, Minister for Agriculture, Food and the Marine Charlie McConalogue is expected to raise Irish concerns about the ongoing impact of input cost increases when he attends the Agriculture and Fisheries Council in Brussels today (Monday, January 17).

Speaking ahead of the meeting, the minister said: “Despite the strong recent performance across many markets, I remain concerned about the ongoing impact of increases in fuel, fertiliser, feed and energy prices over recent times.

“These are putting farmer margins under significant pressure. It is important to consider carefully all possible levers to ease these impacts, including the issue of anti-dumping duties on fertilisers,” he added.