A new €100m loan fund to support farmers dealing with rapidly increasing input and business costs has been launched by Bank of Ireland.

The new Agri Assist Loan Fund will provide an additional working capital facility for farmers at a competitive 3.86% rate, with flexible repayment terms of between six months and three years. This interest rate is 2-2.5% below that of standard working capital loans.

The finance package can be used for stocking loans, to pay agri-contractor charges or for the purchase of inputs such as seed, fuel, fertiliser and feed. The loans can also be used to clear existing merchant and/or co-op credit.

Loans ranging from €1,000 to €100,000 will be covered by the fund, with applications open up to the end of November.

Bank of Ireland confirmed that the loan package will be available to all enterprises including pigs, and will be open to existing customers and non-customers.

There is no doubt that the increasing price of farm inputs has placed extra strain on farm cash flows

Eoin Lowry, head of agriculture at Bank of Ireland said the loan package was designed to support farmers in meeting the continuing challenge of spiralling input costs.

“There is no doubt that the increasing price of farm inputs has placed extra strain on farm cash flows. Given that only one third of farmers currently have borrowings, we have launched the Agri Assist loan fund to ease some of this strain,” Lowry said.

“This new €100m fund provides an additional level of support to farmers so that they can ensure they have sufficient cash to manage their farms through the summer months,” he maintained.

Lowry explained that Bank of Ireland had worked as part of the National Fodder and Food Security Committee to devise what he called its own “practical solution that will help farmers”.

He encouraged farmers looking for assistance to come and talk to the bank.