A “GAME-CHANGING” loan scheme for farmers which was recently reopened for the first time since 2003 “should have never been shut in the first place”, according to the president of the Jersey Farmers Union.
Dougie Richardson nonetheless hailed the government’s decision to re-establish and pump £10 million into the Agricultural Loans Scheme as “great news” for the sector.
Economic Development Minister Kirsten Morel formally announced the move at the Jersey Farming Conference and released further details yesterday.
He said it would correct the historic underfunding of the Island’s oldest and arguably most culturally important sector.
The £10 million boost was unanimously approved by States Members last November, and Islanders in the agricultural industry can now apply through Jersey Business to borrow a portion of the first £3 million tranche of the funding to make long-term investments in their businesses.
Mr Richardson told the JEP it would help farmers with the purchase of equipment, buildings, and more – “the sort of things that you have to hold your breath before you make a big decision and purchase, but which are vitally important”.
He added: “This is very good news for the sector. It’s great that the Jersey government has listened to concerns of the industry that we’ve been putting forward quite vigorously in recent years.
“The States loan system was closed for a number of reasons, possibly due to low interest rates at the time, but that was not a good idea. It should have been kept in place and should have adjusted accordingly over time.”
The loan scheme was described by former JFU president Peter Le Maistre as a “game-changer” in the 1970s when he bought his first field.
These loans are specifically designed for the agriculture industry, with more favourable terms and conditions than high-street banks offer, such as longer repayment periods.
Mr Richardson continued: “We’re thrilled that it is finally being introduced again, and it’s going to mean that many of the good ideas that are in the industry can move forward. It will be a tremendous help and boost to the next generation, and we are already seeing evidence of that.
“The younger generation are looking at the industry a bit more seriously. A lot of people would love to farm, but the challenges to bring that about are really quite daunting, so it is of tremendous help to those who are young and with many years ahead.
“If you’ve got a government that’s with you, it makes a huge difference. If farmers are in the business of producing affordable food, then the farmers need affordable finances. It’s pretty straight forward.”
He added that the scheme was good news more generally for the food security and wellbeing of Jersey’s population.
Deputy Morel has also announced he will be proposing to increase funding for rural and marine sectors by £1.1 million over the next two years to help farmers transition to paying their workers a higher minimum wage.
This additional funding would be delivered through the Rural Support Scheme, which was launched in December 2022 and introduced “credits” for farmers for the first time, rewarding them for providing a “public good”, such as minimising waste, creating conservation areas and managing hedgerows.
Commenting on the relaunch of the Agricultural Loans Scheme, Deputy Morel said: “The loans will make it easier for businesses in this important sector to develop, and continue to be the protectors of Jersey’s natural environment.”
Deputy Morel admitted that there had been a steady reduction in government support for farming over recent decades.
At the conference, he told farmers: “Successive governments had drawn down Jersey’s support for agriculture at the same time as neighbouring jurisdictions had increased their own. As a result, the sector had been competing on an unlevel playing field and the pressures this brought had reached a peak.”
Environment Minister Steve Luce said that the EU average for spending per head on agriculture last year was £118. He went on to explain that the same figure for the UK was £55, while in Jersey it was £32.
Applications are now open for the Agricultural Loans Scheme at: jerseybusiness.je/finance/agricultural-loans-fund.
