AIB’s lending policy for dairy farmers has changed in response to the cut to the nitrates derogation.

The bank said it has been factoring a potential reduction to the derogation into its new lending assessment for dairy farmers since its midterm review was announced in 2022.

It is also factoring in the changes to cow banding, an AIB spokesperson told the Irish Farmers Journal.

The bank added that its advisers had been speaking with dairy farmers about the impact the new 220kg N/ha limit may have on their farm finances.

“Over the past 12 months, our agri adviser team and business advisers have been having conversations with our dairy customers in relation to the potential impact of the changes to the nitrates derogation, if any, on their business and to ensure that their banking facilities are appropriate to their business.”


Permanent TSB (PTSB) confirmed to the Irish Farmers Journal that it has not changed its lending policy for dairy farmers in line with the cut to the nitrates derogation.

The bank added that it has not written to dairy farmers above the 220kg N/ha limit advising them of any changes to their loans.

If there is a 170kg N/ha limit in the future for all farmers, PTSB said its credit application process would account for this.

“Given our focus on sustainability, our credit application process considers the risks associated with environmental impacts, including nitrates, and the potential need for customers to adapt as a result of transition to a low carbon economy,” a statement from PTSB said.

Bank of Ireland said it keeps its agri sector lending under continuous review to ensure alignment with policy and regulatory developments.

The bank did not respond as to whether or not its lending policy for dairy farmers had changed in line with the derogation cut.

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