Beef farmers accounted for almost two-thirds of farm loans issued by the Credit Union last year. Under its “Cultivate” farm loans scheme, the Credit Union said 64% of all farm loans issued last year went to beef farmers, with 26% of loans awarded to dairy farmers.

A further 6% of loans were issued to sheep farmers, while tillage and pig farmers accounted for the remaining 4% of farm loans issued by the Credit Union last year.

According to the Credit Union, the average loan taken out by beef farmer customers last year amounted to just under €22,000 and was spread over five years. The average beef farmer who applied for the loan owned 82 acres of land and had 15 suckler cows. Over 90% of beef farmer applicants had an off-farm income.

Beef farmers said they planned to use the money for stocking and working capital (29%), investing in farm buildings (18%), buying a tractor (16%), improving land (11%) or investing in new equipment (8%).

Dairy farmers accounted for just over a quarter of all farm loans issued by the Credit Union last year. Reflecting the on-farm investment that has taken place in the dairy industry over recent years, the average loan taken out by dairy farmers with the Credit Union last year was just under €28,000 and was spread over almost six years.

The average dairy farmer owned just over 105 acres of land and had a herd of 75 dairy cows. Just over two-thirds (67%) of dairy farmers that applied for the Cultivate loans had an off-farm income.

Over one-fifth (22%) of dairy farmers said they would use the funding to invest in farm buildings, while 20% said they would use the money for stocking and working capital.

Since it started its Cultivate farm loans scheme in 2017, the Credit Union has lent over €30m to farmer customers.

Cultivate farm loans are unsecured for any amount up to €50,000 with an interest rate of 6.75%. These loans are not asset-backed so the farmer doesn’t have to put up any collateral against the loan such as property or land. The repayments can be spread over a maximum of seven years.