Following in the footsteps of a group of Galway credit unions who piloted a new farm loan offering a year ago, credit unions in Clare and west Limerick are now offering farm finance options under the Cultivate brand.

The Cultivate farm loan package will offer up to €50,000 unsecured loans for a variety of purposes, such as working capital, livestock purchase, farm development and farm machinery purchase. Start-up finance for young trained entrants to farming will also feature in the loan package. The term of the loan will be for up to seven years.

This brings to nine the number of credit unions offering farm loans. These nine credit unions have combined assets of over €750m and represent over 150,000 members.

In the first nine months of operation, 350 farmers have borrowed a total of €5.5m under the Cultivate brand with an average loan of €15,750.

The five new credit unions in west Clare and Limerick which are joining the programme to offer farm finance are: Cois Sionna, Derg; Ennistymon; Kilrush and Ennis. They are following the pilot initiative run by four credit unions in Co Galway – Ballinasloe, Gort, Loughrea and Tuam.

Project manager Brendan Heneghan, a former regional manager with Teagasc, said: “Farmers value the face-to-face relationship banking and the personal touch where a farmer can come in to his local credit union and discuss his proposals.”

He added: “They value a speedy loan application process and the fact that no security is required, while a competitive interest rate is also important.”

Information and application forms for Cultivate farm loans can be found in your local credit union offices from early March.

Read more

Irish farm debt rising but overall remains very low