Farmers are still awaiting their letter of undertaking/ guarantee promised by Brendan Smith, Minister for Agriculture, Food and Fisheries last month in the wake of his announcement that grant payments for the Farm Waste Management Scheme would be paid out in three instalments beginning in 2009 and ending in 2011.

Minister Smith, last month, outlined each farmer would receive a letter – for those who have been approved, the letter would detail the amount they will receive with each instalment; for those awaiting the amounts stated would be subject to final approval. This letter was the farmer’s safety line following Smith’s announcement. It guaranteed that the FWMS grant would be paid out, albeit on a stage basis. However, many farmers have not yet received their letter, which has raised questions in the local farming community.

Minister Smith stated at the end of February that paying out of the first 40% instalment of the grant would begin in early March and he expected payment of all outstanding first instalments to be completed by June 2009. At present, a total of Û56 million has been paid out to 6,400 farmers under the first stage payment. Padraig Walshe’s, President of the IFA, repeated calls on the government to offer further assistance to farmers who have substantial loans reached fruition when on 27 February the Minister responded with an announcement that the government will issue a special ex-gratia payment. This ex-gratia payment will not exceed 3.5% of the total of the second and third stage payment.

This, however, according to the Minister is not linked to the interest rate on the outstanding loans “the rate of interest to be charge on any loan taken out by farmers to finance the farm waste investment is, of course, a matter between the farmer and his or her bank…” The news that this special payment will be paid with the final instalment in 2011 has caused concern among farming organisations as farmers have interest repayments due now.

The IFA has also met with a number of financial institutions, which have confirmed special interest rates they will charge to those farmers who have loans outstanding under the FWMS. In an issued statement, the IFA announced, “…by securing these special rates, farmers’ creditworthiness will be protected so they can negotiate normal working capital for their farm business. The Government guarantee means the monies owed to farmers under the FWM can be taken off the farmer’s balance sheet putting farmers in a strong position to currently negotiate further finance for normal farm business.”

These announcements from the Minister are, however, met with trepidation by those farmers still awaiting the promised safety line letter.