The New Entrants Scheme pays young farmers under 40 years of age, up to £17,000 of interest, over a five-year period, on loans invested for an agricultural purpose.
Explaining the effects of the suspension, the Minister said: “Interest in the New Entrants Scheme has been high over recent months and I am very pleased that so many young farmers have come forward and applied in such high numbers. It is very heartening that young applicants are willing to invest to capitalise on the potential of their farm businesses.
“The scheme’s participation rate just goes to show the strong degree of faith in the future of farming in the rural community. However farmers will recall that when I extended the closing date of the Scheme until February next year, it was dependent on when the available budget was fully committed. I can now confirm that we have reached that level and although it is to young farmer’s credit that so many have applied early, unfortunately I am suspending the Scheme to new applications.
“I will review the position in the autumn in light of progress with the existing applications.”
Notes to Editors:
- To be eligible for the Scheme, applicants must be under 40 years of age at the time of making an application on Form NES 2. Also, applicants need to have become Head of Holding within the 12 month period prior to making this application.
- Following this initial application a Business Plan must then be prepared detailing the project for which the loan is to be obtained. The project must have an agricultural purpose and it must promote additional farm investment. The purchase of land, Single Farm Payment entitlements and farm machinery for contracting purposes are ineligible for support.
- The maximum amount of aid for each applicant is £17,000 and the maximum duration of subsidised interest payment is five years. The applicants and their lending institution will agree the amount of the loan, the repayment schedule and the rate of interest.
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