Driving through most small villages and town across Ireland, the one thing they are bound to have in common is the Credit Union. Where once the Credit Unions operated for several hours a week out of rented premises they now have up to date offices and full-time staff.
Given how deeply embedded the Credit Union is in community life it seems extraordinary that when asked 60% of farmers didn’t realise the Credit Union could be a source for farm related lending.
An eye opener
The research was carried out in 2016 by Ballinasloe, Gort, Loughrea and St Jarlath’s (Tuam) Credit Unions and it proved to them that if they wanted farmer’s business, they needed to develop a product that was specifically for farmers. They also needed to get the message out to farmers they were there to do business. Working together to do this made sense as working apart they found it difficult to get traction with farmers.
“This was a real eye opener for us. We discovered that farmers associated the Credit Unions with car and holiday lending, not with calf feeders or milk tanks. It was a case of if you don’t ask, you’ll never know,” says Dave McDonnell, CEO of Naomh Breandán Credit Union in Loughrea. And ask they did.
Teresa Roche of Kylemore Farmhouse Cheese with the family's herd of pedigree British Holstein Friesian cows. \ Sean Lydon
“We wanted to find out what farmers really wanted. The list included easy access to credit, flexibility around payments and a competitive interest rate. Above all they didn’t want to be dealing with a voice on the phone. They wanted face-to-face contact with someone who understood their business,” says Dave.
These concerns weren’t just noted, they were acted upon. In order to better understand the business of farming and the issues faced by farmers, Credit Union staff received five days of tailored training with Teagasc and at Mountbellew Agriculture College.
Ready to launch
After 16 months research and development the four Credit Unions launched Cultivate in March 2017. Initial demand was strong and has remained consistent. The average loan is between €16,000-17,000 with machinery, livestock, buildings and capital works being catered for. There’s no deposit required nor do you have to have shares in the Credit Union.
Margaret Loughnane, Loughrea Credit Union; Teresa Roche, Kylemore Farmhouse Cheese; Dave McDonagh, Loughrea Credit Union and Anne McInerney Gort Credit Union. \ Sean Lydon
“Loan approval is based on ability to pay and many of our customers have an off-farm income. The farmer has total flexibility around how fast he wants to pay off his loan. As long as they meet the minimum payment, they can do it as slow or as fast as they want and there are no penalties. Above all, the loan decision is made in the local Credit Union. This is proving to be a good experience for farmers and we are getting lots of repeat business.”
Sharing
Anne McInerney is CEO of Gort Credit Union. “We are one of the smaller Credit Unions and we could never have got Cultivate going on our own. We share the costs of marketing and promotions and do a lot on social media. We’ve lent out €750,000 on Cultivate which we are happy with and very few issues have emerged.”
After such a positive start it didn’t take long for Credit Unions to get the message and now there are 26 Credit Unions nationally offering Cultivate. The maximum loan is €50,000 at an interest rate of 6.55% (6.75%APR).
A great welcome
Teresa Roche is a qualified nurse who spent 15 years working abroad before returning home to Loughrea and the family dairy farm. She was looking for a way of increasing the value of the milk produced on the farm and decided to go with making cheese.
In 2016, she converted a sheep shed into a cheese house and by 2018 she had started production of Kylemore Farmhouse Cheese. Teresa makes a Swiss mountain-style hard cheese that suits most palates. It is a natural cheese with a handmade rind that can be used the same way as Parmesan.
Anne McInerney, Gort Credit Union; Dave McDonnell Loughrea Credit Union; Teresa Roche and Margaret Loughnane, Loughrea Credit Union. \ Sean Lydon
Teresa was turned down for ‘start-up funding’ by her local banks but secured €20,000 from Loughrea Credit Union to do the conversion. “I’d heard about Cultivate’s food innovation and agri loans and I got a great welcome when I called in. The big banks wanted guarantees but the Credit Union knew my family, my community and backed me.”
The milk used to produce Kylemore Farmhouse Cheese is sourced from the family’s closed herd of 105 pedigree Holstein Friesian cows. The cheese is manufactured and matured on the farm and for the past two years Teresa has been supplying it to premium outlets, local shops and delis. Fans of her cheese include Neven Maguire, Ashford Castle and Kai in Galway
She says the production of local artisan food gives an identity to the community. “While a new food hub will open in Athenry next year, there is nowhere to test or manufacture new food products for small businesses like mine. This means driving to Moorepark two to three times a week which is hard going.”
“Start-up businesses need capital and they are least likely to get it from the banks. It was Loughrea Credit Union that helped me develop my cheese house, maturing room and visitor centre/farm shop. Without them, I just wouldn’t be in business.”
Looking for farmer’s business
Youghal Credit Union has 15,000 members, assets of €100m, deposits of €81m and a loan book of €27m. It was established 53 years ago and has a staff of 22.
Siobhan Daly is senior loans officer and says Cultivate has helped persuade farmers to borrow from the Credit Union. “We have lots of farmer members but they didn’t see the Credit Union as somewhere to borrow from. Cultivate gave us a stronger arm to go after that business and show farmers what we could offer.”
An essential part of the offering was getting a better understanding of the practical and business sides of farming. For Siobhan and two of her colleagues it meant five full days of training at Pallaskenry Agriculture College and Teagasc in Mtchelstown. And that training is ongoing.
“I wouldn’t have been able to read a milk cheque or understand the value of protein or butterfat. Slurry trailing shoes would have meant nothing to me. The training gave us all the confidence to talk with farmers. It’s important we offer a personal service and the farmer will be dealing with the same person all the time.”
Since offering Cultivate in 2018, Youghal has given out €1m worth of loans to farmers.” We are very happy with this especially as between BREXIT and COVID-19 farmers have been holding off from borrowing until things are more certain.”
So far loans have been approved for underpasses, automatic calf feeders, new bulk tanks and dairy upgrades. The loans are not secured and the term is a maximum of seven years.
“We’d like if farmer borrowers had shares in the Credit Union but it’s not essential to getting a loan. We are delighted to see farmers return for a second loan. We offer a personal service from staff that are knowledgeable about farming, lend without security and are competitive when it comes to interest rates.”
Loan approved
within 48 hours
Tallow dairy farmer Ray Bryan has been a member of Youghal Credit Union for over 30 years but never borrowed from it until Cultivate arrived.
“I’d always borrowed from the banks. But two years ago I called into my bank and asked to speak with whoever was managing my account. It turned out that person was working in a different branch and when I went looking for him I was told he was two years gone from the bank.”
“So, I’d seen notices about Cultivate and called into the Credit Union. Everything was straight forward; the staff were knowledgeable and anxious for the business. They knew what they wanted from me and the loan was approved within 48 hours of me getting everything together.
“I borrowed €30,000 to upgrade the cubicles, dairy and bulk tank. The interest rate was very competitive with the banks and unlike the banks no security was required.
“Since then I’ve been back for a second loan and as they had my details and I was dealing with the same person, I was approved within 24 hours. My experience with the Credit Union had been A1.”
Driving through most small villages and town across Ireland, the one thing they are bound to have in common is the Credit Union. Where once the Credit Unions operated for several hours a week out of rented premises they now have up to date offices and full-time staff.
Given how deeply embedded the Credit Union is in community life it seems extraordinary that when asked 60% of farmers didn’t realise the Credit Union could be a source for farm related lending.
An eye opener
The research was carried out in 2016 by Ballinasloe, Gort, Loughrea and St Jarlath’s (Tuam) Credit Unions and it proved to them that if they wanted farmer’s business, they needed to develop a product that was specifically for farmers. They also needed to get the message out to farmers they were there to do business. Working together to do this made sense as working apart they found it difficult to get traction with farmers.
“This was a real eye opener for us. We discovered that farmers associated the Credit Unions with car and holiday lending, not with calf feeders or milk tanks. It was a case of if you don’t ask, you’ll never know,” says Dave McDonnell, CEO of Naomh Breandán Credit Union in Loughrea. And ask they did.
Teresa Roche of Kylemore Farmhouse Cheese with the family's herd of pedigree British Holstein Friesian cows. \ Sean Lydon
“We wanted to find out what farmers really wanted. The list included easy access to credit, flexibility around payments and a competitive interest rate. Above all they didn’t want to be dealing with a voice on the phone. They wanted face-to-face contact with someone who understood their business,” says Dave.
These concerns weren’t just noted, they were acted upon. In order to better understand the business of farming and the issues faced by farmers, Credit Union staff received five days of tailored training with Teagasc and at Mountbellew Agriculture College.
Ready to launch
After 16 months research and development the four Credit Unions launched Cultivate in March 2017. Initial demand was strong and has remained consistent. The average loan is between €16,000-17,000 with machinery, livestock, buildings and capital works being catered for. There’s no deposit required nor do you have to have shares in the Credit Union.
Margaret Loughnane, Loughrea Credit Union; Teresa Roche, Kylemore Farmhouse Cheese; Dave McDonagh, Loughrea Credit Union and Anne McInerney Gort Credit Union. \ Sean Lydon
“Loan approval is based on ability to pay and many of our customers have an off-farm income. The farmer has total flexibility around how fast he wants to pay off his loan. As long as they meet the minimum payment, they can do it as slow or as fast as they want and there are no penalties. Above all, the loan decision is made in the local Credit Union. This is proving to be a good experience for farmers and we are getting lots of repeat business.”
Sharing
Anne McInerney is CEO of Gort Credit Union. “We are one of the smaller Credit Unions and we could never have got Cultivate going on our own. We share the costs of marketing and promotions and do a lot on social media. We’ve lent out €750,000 on Cultivate which we are happy with and very few issues have emerged.”
After such a positive start it didn’t take long for Credit Unions to get the message and now there are 26 Credit Unions nationally offering Cultivate. The maximum loan is €50,000 at an interest rate of 6.55% (6.75%APR).
A great welcome
Teresa Roche is a qualified nurse who spent 15 years working abroad before returning home to Loughrea and the family dairy farm. She was looking for a way of increasing the value of the milk produced on the farm and decided to go with making cheese.
In 2016, she converted a sheep shed into a cheese house and by 2018 she had started production of Kylemore Farmhouse Cheese. Teresa makes a Swiss mountain-style hard cheese that suits most palates. It is a natural cheese with a handmade rind that can be used the same way as Parmesan.
Anne McInerney, Gort Credit Union; Dave McDonnell Loughrea Credit Union; Teresa Roche and Margaret Loughnane, Loughrea Credit Union. \ Sean Lydon
Teresa was turned down for ‘start-up funding’ by her local banks but secured €20,000 from Loughrea Credit Union to do the conversion. “I’d heard about Cultivate’s food innovation and agri loans and I got a great welcome when I called in. The big banks wanted guarantees but the Credit Union knew my family, my community and backed me.”
The milk used to produce Kylemore Farmhouse Cheese is sourced from the family’s closed herd of 105 pedigree Holstein Friesian cows. The cheese is manufactured and matured on the farm and for the past two years Teresa has been supplying it to premium outlets, local shops and delis. Fans of her cheese include Neven Maguire, Ashford Castle and Kai in Galway
She says the production of local artisan food gives an identity to the community. “While a new food hub will open in Athenry next year, there is nowhere to test or manufacture new food products for small businesses like mine. This means driving to Moorepark two to three times a week which is hard going.”
“Start-up businesses need capital and they are least likely to get it from the banks. It was Loughrea Credit Union that helped me develop my cheese house, maturing room and visitor centre/farm shop. Without them, I just wouldn’t be in business.”
Looking for farmer’s business
Youghal Credit Union has 15,000 members, assets of €100m, deposits of €81m and a loan book of €27m. It was established 53 years ago and has a staff of 22.
Siobhan Daly is senior loans officer and says Cultivate has helped persuade farmers to borrow from the Credit Union. “We have lots of farmer members but they didn’t see the Credit Union as somewhere to borrow from. Cultivate gave us a stronger arm to go after that business and show farmers what we could offer.”
An essential part of the offering was getting a better understanding of the practical and business sides of farming. For Siobhan and two of her colleagues it meant five full days of training at Pallaskenry Agriculture College and Teagasc in Mtchelstown. And that training is ongoing.
“I wouldn’t have been able to read a milk cheque or understand the value of protein or butterfat. Slurry trailing shoes would have meant nothing to me. The training gave us all the confidence to talk with farmers. It’s important we offer a personal service and the farmer will be dealing with the same person all the time.”
Since offering Cultivate in 2018, Youghal has given out €1m worth of loans to farmers.” We are very happy with this especially as between BREXIT and COVID-19 farmers have been holding off from borrowing until things are more certain.”
So far loans have been approved for underpasses, automatic calf feeders, new bulk tanks and dairy upgrades. The loans are not secured and the term is a maximum of seven years.
“We’d like if farmer borrowers had shares in the Credit Union but it’s not essential to getting a loan. We are delighted to see farmers return for a second loan. We offer a personal service from staff that are knowledgeable about farming, lend without security and are competitive when it comes to interest rates.”
Loan approved
within 48 hours
Tallow dairy farmer Ray Bryan has been a member of Youghal Credit Union for over 30 years but never borrowed from it until Cultivate arrived.
“I’d always borrowed from the banks. But two years ago I called into my bank and asked to speak with whoever was managing my account. It turned out that person was working in a different branch and when I went looking for him I was told he was two years gone from the bank.”
“So, I’d seen notices about Cultivate and called into the Credit Union. Everything was straight forward; the staff were knowledgeable and anxious for the business. They knew what they wanted from me and the loan was approved within 48 hours of me getting everything together.
“I borrowed €30,000 to upgrade the cubicles, dairy and bulk tank. The interest rate was very competitive with the banks and unlike the banks no security was required.
“Since then I’ve been back for a second loan and as they had my details and I was dealing with the same person, I was approved within 24 hours. My experience with the Credit Union had been A1.”
SHARING OPTIONS