Members of Arrabawn Co-op can now apply for sustainability-linked loans of between €10,000 and €500,000 with Bank of Ireland.

Following the launch of Enviroflex last year, loans are now available to milk suppliers who are actively engaged in implementing a range of sustainability actions on farm.

Typically, unsecured loans are available for up to €120,000. The standard term is seven years, with longer terms available for secured lending.

Farmers making upgrades to milking parlours, installing wastewater and slurry storage facilities and investing in renewable and solar technologies can avail of the discounted flexible finance.

The interest rate is variable and is currently at a discounted market rate of 4.88% per annum.

Eligible

Eligible milk suppliers must be Arrabawn Co-op members, participants in the Bord Bia Sustainable Dairy Assurance Scheme and will also need to undertake a number of sustainable actions on their farms.

Bank of Ireland claims to be the leading lender to Ireland’s agriculture industry, with over 82,000 farm customers on its books.

Arrabawn CEO Conor Ryan said: “Arrabawn is delighted to partner with Bank of Ireland to offer Enviroflex to our members and we welcome the introduction of this sustainability-linked product, which complements our own ambitions in this space.

"Arrabawn’s growth is driven by its members and providing them with access to Enviroflex will support them in implementing long-terms measures that improve the sustainability of their farms and the quality of the products they supply.”

Meanwhile, Bank of Ireland's agri development manager Pat Byrnes said that a huge number of farmers looking to enhance their farms sustainability have already availed of this innovative product, as they look to boost cashflow and finance on-farm developments.

"Our aim in developing Enviroflex has always been to make it available to as many farmers as possible across the Irish agriculture industry and to reward farmers for their sustainability actions.”