Heydon outlines plans to introduce low interest loans for farmers
The Minister for Agriculture, Food and the Marine, Martin Heydon has outlined his plans to introduce low interest loans for young farmers.
Minister Heydon was responding to a parliamentary question from Fianna Fáil TD, Peter "Chap" Cleere this week (May 15).
According to the minister, the Department of Agriculture, Food and the Marine (DAFM) works closely with the Department of Enterprise, Trade, and Employment, the Department of Finance, and the Strategic Banking Corporation of Ireland (SBCI).
The minister said that ensuring adequate availability and access to long-term investment for farmers is "one of these priorities".
He outlined that the €500m Growth and Sustainability Loan Scheme (GSLS) is a long-term scheme that enables small and medium enterprises (SME) to invest in the growth and resilience of their business and contribute to climate action and environmental sustainability.
Minister Heydon said: "70% of the overall funding is allocated for strategic investments with a view to increasing productivity and competitiveness, underpinning future business sustainability and growth.
"A minimum of 30% of the lending volume is targeted towards climate adaptation and environmental sustainability purposes, with the aim of helping SMEs to invest in sustainability and energy efficiency," he added.
The GSLS offers loans from €25,000 up to €3 million for terms of between seven and ten years.
Loans up to €500,000 are available unsecured with interest and capital moratoria of up to 90 days permitted, while loans are available to June 30, 2026, or until the scheme is fully subscribed.
"The availability of unsecured loans up to €500,000 under GSLS make them a particularly good source of finance for young farmers, especially those with low or no available security," Minister Heydon said.
"It also serves smaller-scale farmers and new entrants to farming, who often do not have the leverage to negotiate more favourable terms with their bank."
Minister Heydon acknowledged that liquidity and access to finance is a challenge for primary producers, such as farmers, who are subject to income volatility and are vulnerable to weather events.
He said: "In addition to government-backed schemes, I and my department meet and liaise with the main banks regularly on access to finance issues relating to the agri-food sector, including the need for banks and financial institutions to assist and support generational renewal."
