EU considering loans to encourage young people to stay in farming

THE EU is considering special loan packages to encourage young people to stay in farming, according to a leaked document obtained by Macra na Feirme.

Reduced interest loans, EU-secured loans, deferred payments and an Installation Aid grant are all listed in an EU review document forwarded to Macra by its European young farmer partner organisation, CEJA.

Macra president Michael Gowing said: “The leaked Commission document on CAP proposes that addressing the specific needs of young farmers and new entrants will be a priority in the new CAP. Less than 7% of Europe’s farmers are in the under-35 age group.

“The Harvest 2020 report placed special emphasis on giving young people access to farming. Agriculture by its nature is capital-intensive.

“You must give young people the tools to innovate, and that means access to finance. Young farmers accept that they’re unlikely to become millionaires in this industry, they just want to earn a living and get a foothold in the industry.”

EU Agriculture Commissioner Dacian Ciolos indicated to Macra’s senior executive at a recent meeting that he would give full consideration to its call for a mandatory young farmer package that would include Installation Aid. Macra also proposed grant aid for investment, subsidised loans or guaranteed cover bonds and tax deductions.

Macra’s agriculture and rural affairs manager, Derry Dillon, noted: “The soundings from CEJA are very positive in relation to pillar two of CAP, which suggests there will be schemes to ensure young people stay in farming.”

The 2010 annual conference (Rally), sponsored by Kehoe Brothers, will be hosted by the Wicklow Macra county executive in the Arklow Bay Hotel this bank holiday weekend.