Michael Creed, the Minister for Agriculture, Food and the Marine, has said that the €1 billion loan package announced today, Monday, April 29, will allow farmers to “sustain and develop their individual enterprises”.
He was responding to the launch of the €1 billion programme loan – specifically targeting young farmers – that was announced by the European Commissioner for Agriculture and Rural Development, Phil Hogan, and European Investment Bank (EIB) vice-president, Andrew McDowell.
“This will contribute to the overall development of the agri-food sector, which is a hugely valuable part of the Irish economy and particularly important for our rural and coastal communities,” said the minister.
One of my priorities is to improve access to finance for the agri-food sector. I look forward to working with the [European] Commission and the EIB to ensure that Irish farmers have access to appropriate financial products to enable them to sustain and develop their individual enterprises.
“Supporting young farmers and generational renewal continues to be a priority, and will form an important part of the CAP [Common Agricultural Policy] post-2020,” added Minister Creed.
As part of that support, the minister highlighted the recently launched Future Growth Loan Scheme, which is aimed at making up to €300 million available in loans to eligible businesses, including farms and agri-food enterprises.
“As I said at its launch, this is a long-awaited source of finance for young and new entrant farmers, especially the cohort who do not have high levels of security. It will also serve smaller-scale farmers, who often do not have the leverage to negotiate for more favourable terms with their banking institution,” argued Minister Creed.
€1 billion
Speaking today during the announcement of the loan package, Commissioner Hogan said: “Access to finance is crucial and too often an obstacle for young people wanting to join the profession.
“With 11% of European farmers under the age of 40, supporting young farmers in the sector is a priority for the European Commission and the post-2020 Common Agricultural Policy,” he added.
For more on the new loan package, click here.