Farmers are applying in large numbers for the low-cost agri loans. Almost half of the €150m total has been applied for, the Irish Farmers Journal understands.

This points to all available funding being used up in advance of the September close of applications.

Some farmers have expressed concern that they were being asked to repay loans within one or two years, despite having requested longer terms and the scheme offering finance for up to six years. That could leave them returning for new borrowings at higher interest rates without having fully addressed their cashflow issues.

Time pressure placed on farmers

IFA farm business chair Martin Stapleton has written to the Strategic Banking Corporation of Ireland (SBCI) and the three pillar banks on this.

“Short terms of 12 and 24 months on working capital finance are inappropriate for some farmers,” he said. “The debt they hope to finance has built up over a number of years and cannot be repaid over a short period of time.”

Listen to "Reaction to the €150m loan scheme" on Spreaker.

One bank is refusing to consider past purchase of trading stock such as cattle or fertiliser as eligible for the scheme, contrary to the approach of the other two providers. Martin Stapleton has raised this issue too.

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Half of agricultural finance now applied for

Low-cost loans – what you need to know