Just five weeks after opening – all three banks, Ulster Bank, Bank of Ireland and AIB – confirmed that funds had been exhausted. The loans have an interest rate of 2.95% and can be taken out for up to six years.

However, on Tuesday, the agriculture committee heard that banks have manipulated the scheme for their own benefit by forcing farmers to take out shorter loans and that a number of farmers have been refused.

Jackie Cahill, TD for Tipperary, said banks have forcibly reduced loan lengths for farmers.

“Farmers are under huge income pressure and the speed the loans were applied for shows the pressure farmers are under.

“The banks have shown huge reluctance to give a six-year payback too and they are trying to suit themselves, rather than farmers. They have forcibly reduced the length, even halved it, in some cases.

“The banks have not operated the scheme in the spirit the Department meant it and they have manipulated it for their benefit,” he said.

Six years 'wasn’t guaranteed'

Charlie McConalogue also pressed the Minister for Agriculture Michael Creed on whether targets for different loan lengths had been agreed with banks.

“It was wide open for the banks to exploit if you didn’t have a percentage of many were to be given loans for two years and so on,” the Donegal TD said.

Creed responded that he was “satisfied we constructed a scheme unlike anything in the market. It hasn’t been cheap but we identified a gap in the market. We couldn’t say how many were going to apply this year or next year.

“The six years was a maximum. It didn’t mean everyone was going to get six years. It wasn’t guaranteed,” the minister said.

It was agreed among members that the banks involved would be invited to sit before the agriculture committee.

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