France will provide up to €2 billion ($2.24 billion) in zero-interest loans for farmers after this summer's record heatwaves and droughts damaged crops and pastures, the agriculture ministry said on Thursday, as reported by Reuters and carried by The Cattle Site.
The loans are meant to help farmers buy fodder, fertiliser and other essential supplies. Several banks have already begun offering special drought loans at around 2.5% interest; under the new scheme the government will pay that interest itself. "The government will introduce the equivalent of zero-interest loans by covering the remaining interest itself, for an outstanding loan balance of €2 billion, to enable farmers to purchase fodder and other inputs, amongst other things," the ministry said.
The measure comes on top of a €1.3 billion emergency aid package announced early last month, and the plan also includes technical measures to ease farmers' financial strain. It arrives as the government faces sensitive negotiations over next year's budget ahead of the presidential election.
The report was written by Melanie Epp for The Cattle Site.
Photo: Didier / Wikimedia Commons (CC BY-SA 3.0)
Source: The Cattle Site
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