Agricultural Loans: 31st December 2006

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A decision made (15.03.07) to note the situation of Agricultural Loans up to 31st December 2006.

Subject:	Agricultural Loans: 31 December 2006 Report on Agricultural Loans.
Decision Reference:	MD-E-2007-0068		Exempt clause(s):
Type of Report: (oral or written)	Written		Person Giving Report (if oral):	n/a
Telephone or e-mail Meeting?	N/A		Report File ref:	n/a
Written report – Title	Agricultural Loans – 31 December 2006 Report.
Written report – Author (name and job title)	Dr Paul Le Mière, Director of Environmental Management and the Rural Economy, Rural Economy Section
Decision(s): The Assistant Minister is invited to note the situation of the Agricultural Loans.
Reason(s) for decision: The position with regard to arrears has greatly improved in the last half year up to December 2006.
Action required: Director of Environmental Management and the Rural Economy, Rural Economy Section to send copies to the Finance Director and to the Treasury and Resources Minister for noting.
Signature: Connetable G.W.Fisher (Assistant Minister)		Date of Decision:

Agricultural Loans: 31st December 2006

ECONOMIC DEVELOPMENT MINISTRY

Date: 9 February 2007

AGRICULTURAL LOANS – 31 December 2006 Report

INTRODUCTION

This report is to inform the Economic Development Assistant Minister for Agriculture on the current situation with regard to Agricultural Loans.

DISCUSSION

Table 1 - Agricultural Loan statistics as at 31 December 2006 :

	31/12/2006	31/12/2005	31/12/2004
Total number of ‘live’ loans	103	133	150
Total number of borrowers	60	69	79
Total amount outstanding	£5,300,344	£6,715,797	£7,999,517
Number of loans in arrears	27	33	39
Number of borrowers in arrears	16	16	17
Total amount of arrears	£372,776	£520,539	£777,288

Table 2 - Analysis of loans in arrears as at 31 December 2006:

Detail	No. of Borrowers	No. of loans	Amount of arrears
Cases with agreements	12	21	£231,592
10 day letters sent	1	1	£4,398
30 day notices	1	2	£78,387
Cases still being processed	2	3	£58,399
TOTAL	16	27	£372,776

This shows a significant improvement on the same time last year, when there were 16 borrowers accounting for 33 loans in total arrears of £520,539.

Small Business Loans

Under the 1993 policies there was a scheme to assist small businesses with the purchase of items such as machinery and equipment. The assistance was usually in the form of part grant and part loan. The Scheme was suspended in 2000 and at the time there were 38 loans, amounting to £115,000 outstanding. At the 31 December 2006 the amount outstanding was £15,563 compared with £19,754 at the end of 2005.

CONCLUSIONS AND RECOMMENDATIONS

The position with regard to arrears has greatly improved in the last quarter. Efforts are continuing to reduce the level further particularly with regard to the small number who have long outstanding arrears.

The Assistant Minister is invited to note the position.

Dr Paul Le Mière

Director of Environmental Management and the Rural Economy