Some 71% of the loan applications received through Cultivate, the national credit union lending platform for farmers, over the first six months of 2023 came from beef farmers, according to a new report.
In comparison, dairy farmers made up 17% of all loan applications and sheep farmers accounted for 9%.
The average loan application from farmers for the first half of 2023 was for €31,711.
There were differences between loan applications from different sectors, with the average loan applied for by a dairy farmer at €39,258 in comparison with €30,223 for a beef farmer.
According to Cultivate, dairy farmers also continue to carry a higher level of debt on their farm than their beef counterparts.
Farmers have drawn down loans worth over €100m via Cultivate.
The most common debt level for beef farmers was €63,391, while dairy farmers are managing over double that, at €143,712.
Loan uses
Loans granted through Cultivate were used for a number of key on-farm activities in 2023, including stocking and working capital (33%).
The other most popular loan purposes were for farm buildings (21%), purchases of farm equipment (17%) and tractor purchases (12%).
These loan purposes underline the importance farmers are placing on investing in their farms, while also highlighting the ongoing pressures facing farmers due to rising input costs, said Cultivate chair Joe Healy.
Cultivate chair Joe Healy. / Philip Doyle
“Farmers working with the credit unions, to improve and grow their business, appreciate being able to work with a local member of the community that understands their farming needs,” he added.
Total lending
Since its launch, Cultivate confirmed it has issued over €100m in loans to Irish farmers.
In response to the growing demand, credit unions are now expanding the availability of Cultivate by introducing new offices that offer the loan.
This expansion has contributed to a 6% increase in the total value of loan applications in 2023 compared with the same period last year.
“€100m in loans issued is a significant milestone for Cultivate to reach. Our ambition is to make farmer-friendly finance as accessible as possible to farmers throughout the country.
"As demand for Cultivate loans grows, we have seen more and more credit unions come on board to offer the loan product.
“We are a specialist provider of finance to farmers and offer flexible unsecured loans up to €75,000. Our review of the first half of the year highlights the need for this type of loan option as both the average loan amount and number of loans applied for year on year increased for the period,” said Healy.
Read more
The Credit Review Office: what if the bank says ‘no’ to your farm loan?
Credit unions to offer farmers loans up to €300,000
Some 71% of the loan applications received through Cultivate, the national credit union lending platform for farmers, over the first six months of 2023 came from beef farmers, according to a new report.
In comparison, dairy farmers made up 17% of all loan applications and sheep farmers accounted for 9%.
The average loan application from farmers for the first half of 2023 was for €31,711.
There were differences between loan applications from different sectors, with the average loan applied for by a dairy farmer at €39,258 in comparison with €30,223 for a beef farmer.
According to Cultivate, dairy farmers also continue to carry a higher level of debt on their farm than their beef counterparts.
Farmers have drawn down loans worth over €100m via Cultivate.
The most common debt level for beef farmers was €63,391, while dairy farmers are managing over double that, at €143,712.
Loan uses
Loans granted through Cultivate were used for a number of key on-farm activities in 2023, including stocking and working capital (33%).
The other most popular loan purposes were for farm buildings (21%), purchases of farm equipment (17%) and tractor purchases (12%).
These loan purposes underline the importance farmers are placing on investing in their farms, while also highlighting the ongoing pressures facing farmers due to rising input costs, said Cultivate chair Joe Healy.
Cultivate chair Joe Healy. / Philip Doyle
“Farmers working with the credit unions, to improve and grow their business, appreciate being able to work with a local member of the community that understands their farming needs,” he added.
Total lending
Since its launch, Cultivate confirmed it has issued over €100m in loans to Irish farmers.
In response to the growing demand, credit unions are now expanding the availability of Cultivate by introducing new offices that offer the loan.
This expansion has contributed to a 6% increase in the total value of loan applications in 2023 compared with the same period last year.
“€100m in loans issued is a significant milestone for Cultivate to reach. Our ambition is to make farmer-friendly finance as accessible as possible to farmers throughout the country.
"As demand for Cultivate loans grows, we have seen more and more credit unions come on board to offer the loan product.
“We are a specialist provider of finance to farmers and offer flexible unsecured loans up to €75,000. Our review of the first half of the year highlights the need for this type of loan option as both the average loan amount and number of loans applied for year on year increased for the period,” said Healy.
Read more
The Credit Review Office: what if the bank says ‘no’ to your farm loan?
Credit unions to offer farmers loans up to €300,000
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