The COVID-19 pandemic has not dented farmer confidence when it comes to borrowing money.

Credit Union analysis shows that the volume of loans issued to farmers under its Cultivate farm loans scheme has remained broadly stable in 2020.

The Credit Union said the average loan issued to farmer customers this year amounted to just over €24,000 and was spread over five to six years.

More than two-thirds (69%) of all Cultivate farm loans issued by the Credit Union in 2020 went to beef farmers, while dairy farmers accounted for 18% of loans.

Loans

The Credit Union said over 60% of loans issued to farmers in 2020 were used for stocking and working capital, investment in farm buildings or purchasing a tractor.

The average amount borrowed by beef farmers was just over €23,000, while the average loan to dairy farmers was higher at just over €30,240.

“The steady performance of our Cultivate loan book, at a time when many other sectors were suffering significant disruption as a result of COVID-19, is testament to the resilience of farming in Ireland,” said Colin Irwin, Cultivate board member and CEO of Mitchelstown Credit Union.