THE Irish Farmers' Association and Allied Irish Banks have introduced a new low interest loan package for Irish dairy farmers who exceed their EU milk quotas.

Loans will be available for periods of between one and five years but loans repaid within a year will carry a rate of 7.25 per cent. Longer term loans will carry a rate 2.5 percentage points below AIB's AA rate currently 10.5 per cent. The minimum loan is £2,000.