As thousands await grant payments under the Farm Waste Management Scheme, help is at hand in the form of special bridging loans.

The Government's Farm Waste Management Scheme was set up in 2006 to help farmers make investments in essential infrastructure for waste management, such as storage facilities, equipment and animal housing. While around 50% of farmers approved for grants have to date received their funding, some 17,000 farmers were awaiting payment in March 09. Under a phased payment scheme, 40% of the grant aid for this group will be released by June 2009, another 40% in January 2010, and the remaining 20% in January 2011 (to include an ex-gratia payment).

The global economic downturn has compounded problems across the sector, with many farm owners already grappling with declining incomes, greater production costs, a reduction in support schemes and issues around REPS 4 (the Rural Environmental Protection Scheme). Agriculture development body Teagasc recently advised farmers to assess their situation and to "be prepared to negotiate appropriate finance for their farm business in an uncertain and volatile future".

One option for those suffering the effects of the deferred payments under the Farm Waste Management Scheme is a FWM bridging loan, which many banks are offering with preferential rates for those awaiting grant payments. The Irish Farmers' Association has pointed out that these special rates mean that farmers' creditworthiness will be protected so they can negotiate normal working capital for their businesses.These lower rates and the phased payments of the Grant from the Department of Agriculture will put farmers in a stronger position to negotiate further finance for normal farm business.

At Bank of Ireland, we are offering bridging loans with a concessionary rate of 1.5% over prime. The loan is available once the first 40% instalment of grant aid under the Farm Waste Management Scheme has been lodged to your account. These Bridging loans are available for the remaining 60% Grant funding. Contact your local branch manager for more details.