Cultivate, the loan product offered by a group of 54 credit unions across the country aimed at meeting the credit needs of farmers, had its busiest year yet in 2024.

According the annual review of Cultivate, produced by ifac on behalf of the participating credit unions, the total value of loan applications rose 27% when compared with 2023.

The average loan size was €40,790, with an average duration of 6.5 years.

The review showed that the loans were most popular among beef farmers, who accounted for 67% of applications. Dairy farmers were 23% of applicants, with sheep at 7% and tillage at 3% making up the balance.

Average loans

The average loan size to beef farmers was €38,153, while the average loan to dairy farmers was for €49,898.

The review also showed that dairy farmers, on average, had close to twice the overall level of debt as beef farmers. Dairy farmers were also much less likely to have an off-farm income, while almost 90% of beef farmers did have one.

Lending was for a mix of cashflow and farm investment needs. Some 26% of loans were stocking and working capital loans, 21% were for farm buildings, 20% for farm equipment and 15% of loans were for tractors. Another 8% of loans were for land purchases.

Late spring and early summer were the busiest times of year for loan applications, showing that these were the key times for completing on-farm investments.

December was the quietest month of the year and in 2024 was notably lower than 2023, perhaps reflecting the stronger end to the year for farm finances in both the beef and dairy sectors.

The report said that the number of applications last year was 330% higher than in 2019, which it said reflected the increased requirement for the product and the increased availability of Cultivate loans across the country.

The 54 credit unions offering Cultivate loans have 177 locations across the country.