The largest non-bank lender in Ireland has doubled its borrowing limit for dairy farmers to €1m.

Previously, Finance Ireland’s borrowing limit for its Milkflex product, a loan scheme specifically for Irish milk suppliers, was €500,000.

The new Milkflex loan can be repaid across 12 years, complementing Finance Ireland’s existing eight-year loan.

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Founder and chief executive of Finance Ireland Billy Kane said the enhanced Milkflex product will further support both established dairy farmers and new entrants.

“Along with increased borrowing limits and a new ability to fund land purchases, dairy farmers can avail of unique product features including repayments that reflect the seasonal milk supply curve, protection against milk price volatility and disease outbreaks.

“They are also supported on the ground by an expert team of Finance Ireland agri specialists,” he added.

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Key features of the new Milkflex product include:

  • Dairy farmers will be able to borrow up to €1m on an unsecured basis.
  • Borrowers will also be able to fund land purchases with the Milkflex 12 loan, subject to security undertakings.
  • Both the standard eight-year Milkflex loan and new 12-year Milkflex loan are designed to support the growth and sustainability of Irish dairy farms and funding can be used across a wide range of purposes from investment in infrastructure and livestock to environmental initiatives, technology upgrades and working capital needs.
  • Milkflex loans are designed to link repayments to the seasonality of dairy farm milk receipts.

    • Finance Ireland said repayments also react to significant changes in milk prices, reducing or pausing when milk prices fall below certain levels and increase temporarily when prices rise above certain levels.

    This unique feature takes pressure off borrowers when their income reduces, it added.

    Milkflex is supported by over 20 co-ops across the country and, to date, Finance Ireland has loaned over €350m to farmers under the scheme.