Agriculture accounted for almost a quarter (24%) of all loans drawn down through funding from the Strategic Banking Corporation of Ireland (SBCI). Last week, in its annual report, the SBCI said that while the total value of loans drawn down had doubled to €347m since the start of this year, €84m had been to farmers.

Set up in March 2015, it came at a welcome time as farmers expanded in preparation of the lifting of milk quotas. Two thirds, or €56m, of the funds drawn down have been drawn down by dairy farmers. In total, 3,200 agricultural loans with an average loan size of €26,250 were drawn down.

The SBCI was set up by the Government to provide access to alternative sources of lower-cost, long-term funding to small and medium Irish businesses, including farmers.

Share of loans fell

Speaking to the Irish Farmers Journal, SBCI chief executive Nick Ashmore said: “We are not seeing any slow down in agri-lending,’’ but warned that ‘‘this does not mean there will not be a slowdown in the future”.

His comments come as the share of loans being drawn by agriculture fell from 26% at the end of 2015 to 24% at the end of June this year. He added that this was mainly due to a factor of the other sectors catching up rather than agriculture slowing down.

The SBCI does not lend money directly to farmers or businesses but rather through its partner banks AIB, Bank of Ireland, Ulster Bank and four non-bank lenders – Finance Ireland, Merrion Fleet, First Citizen Finance and Bibby Financial Services Ireland.

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