Interest on government farm loans could be reduced

Deputy Kirsten Morel has proposed reducing interest on agricultural loans from 6.5% to 3%

Farmers in Jersey who borrow money from the government may not have to pay as much interest in future if draft regulations are approved.

Deputy Kirsten Morel, Minister for Sustainable Economic Development, proposed a reduction of interest on agricultural loans from 6.5% to 3%.

He also recommended reducing the number of members on the Agricultural Loans and Guarantees Advisory Board from 10 to five people.

In his draft regulation, Mr Morel said he hoped the proposed changes would encourage investment in the farming sector.

He said the industry had been hit by rising interest rates, increases to input costs and rising labour costs.

"Agriculture is an essential component to the island’s economy and must be appropriately supported, in a similar manner to all other developed economies, to maintain a sustainable rural economy for future generations," he said.

"It is an ever-changing and evolving industry that should be championed, and the government is committed to assisting its growth and development for decades to come."

The States Assembly is due to debate the plans in September.