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Farmers had repaid €47.5m of the €145m borrowed under last year’s low-cost loan scheme as of 20 August, a Government review of state-backed loans has revealed.
A RedC survey of farmers borrowing from the Agricultural Cashflow Support Loan Scheme found that 42% had used it to replace merchant credit or overdrafts, while 35% covered ongoing working capital needs.
Under 6% used the option to repay interest only at the beginning of the loan period.
The review recommends better targeting of future schemes and concludes that “financial instruments may represent an appropriate policy support for profitable dairy farmers” while direct grants and subsidies are likely to remain important for drystock and other sectors.
SHARING OPTIONS: