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A young farmer has been left in limbo waiting for the arrival of the next tranche of low-cost loans. An additional €200m was promised for farmers at the start of June but delays to Government formation mean that legislation needed to release the funds has not yet been passed.
The Clare farmer has received a 60% TAMS grant, which comes with a conditional time limit to start building his first slatted shed, but will be forced to accept a loan from his bank at a higher rate than what is on offer through the Future Growth Loan Scheme (FGLS).
It’s very disappointing. I’m a young farmer and saved money through an off-farm job and put a lot of planning into this shed
“I need to decide in the next week because I’m under contract with my TAMS approval so I need to move,” the farmer told the Irish Farmers Journal.
“The normal rate of interest is substantially higher, there is nearly a year’s worth of repayments in the difference each year.
“It’s very disappointing. I’m a young farmer and saved money through an off-farm job and put a lot of planning into this shed.”
The loan amount was increased to €500m in June
The FGLS has been hugely popular with farmers, and the agriculture section of the loan fund awarded to Ulster Bank and Bank of Ireland has already been used up. Small-scale and young or new entrant farmers were meant to be the main focus. To date, the highest number of applicants have been dairy farmers with average loan amounts of €122,000.
The loan amount was increased to €500m in June but legislation is needed before the full amount can be secured from the European Investment Bank Group.
Loans have an initial maximum loan interest rate of 4.5% for loans less than €250,000. The loans are for terms of eight to 10 years and unsecured up to €500,000.
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