Subscriptions to Dairygold’s latest loan note were closed almost three months early when the €8m target was reached well ahead of schedule.

The guarantee of attractive interest payments on the funds invested, at a time when the banks are effectively charging for money on deposit, has been cited as the primary reason for the increased appetite among both farmers and workers for the co-op investment scheme.

The latest Dairygold funding round was due to remain open until late October, but a surge in subscriptions saw the target met by late July.

A Dairygold spokesman confirmed to the Irish Farmers Journal that the fund reached its maximum subscription “very quickly.”

Loan options

Open to Dairygold shareholders and employees, there were two options available to applicants.

The loan note for the first option was for three years. It pays an interest rate of 3% plus the three-month Euribor rate per annum.

The second option was for a five-year term at 3.5%, plus the three-month Euribor rate per annum. A minimum investment of €1,000 was required for both options.

“The 2021 Loan Note Offer is an opportunity for members and employees to contribute to the future success of Dairygold,” a letter from the co-op stated.

However, the latest loan note offer was also viewed as a very sound investment by Dairygold shareholders, given the current fees and charges being imposed by the banks on savings.

“Putting money into the loan note this time around was a no-brainer for farmers,” said one Dairygold shareholder.

“We’re getting nothing for our money on deposit, apart from being hit with fees. The loan note was one of the few places that offered some sort of a return,” he added.