Banks could look for a farm’s carbon footprint for future lending, a webinar organised by Clonakilty IFA heard on Monday night.

“While we don’t ask for the carbon footprints of farming right now, I don’t think it would be a stretch to say that there may be a time in future where we will be asking for such measures,” Eoin Lowry, head of agribusiness with Bank of Ireland told the ’Farming in a new environment in west Cork’ webinar.

He stated: “Up to this point we would have looked at lending purely in financial metrics and I think that is going to change in the future. The non-financial metrics such as stocking rates, slurry storage, the genetic potential of your herd, fertiliser use, all of these are going to become critical to lending decisions in future.”

For this to occur, he told the meeting that the leadership within the stakeholders in agriculture will have to develop and have quantifiable measurements in place regarding on farm carbon levels.

Regarding potential financial pressures on farms next spring, he said:

“We’re anticipating extra demand for working capital in the springtime as fertiliser and feed bills flow onto farms.

“Ensuring that additional working capital is not just at farm level but is all along the supply chain.

“From importers through to the merchants and co-ops to ensure they have the additional working capital to support the industry.”