Bank of Ireland sees rise in Agri lending
- New Agri-lending to farmers up 3% in first half of 2023; since 2020 new Agri-lending up 20%
- 4 in 5 Agri loan applications made online; simplified digital lending journey in place
- Loan demand to fund environmental improvements rises in first half of 2023
- More than 90% of all Agri-loan applications are approved, the majority in 24 hours
Bank of Ireland, the leading lender to Ireland’s agriculture industry, has recorded a 3% increase in new Agri-lending for the first six months of 2023. Underlining Bank of Ireland’s ongoing focus on supporting Irish farmers, since 2020 the Bank has recorded Agri-lending growth of 20%. This is despite there being an overall market decline of 10% in new Agri-lending during the same period.
There have been a number of trends in new lending across three key segments of the Agri sector. 2023 has seen a significant increase in demand for loans for land purchases mainly from dairy farmers. Poultry farmers have also driven lending growth for a range of on-farm investments including enhanced animal welfare standards. Beef farmers continue to borrow for working capital purposes and remain the Bank’s largest Agri-customer base.
Demand for loans to improve the environmental footprint of farms has increased in the first half of 2023 driven by new government schemes, introduced to fund solar panel installation to make costs savings and reduce energy bills, along with increased demand for loans to support investment under the new Targeted Agricultural Modernisation Scheme (TAMS).
With over 82,000 farm customers on its books, the Bank is also investing to make it easier to apply for loans and quicker to get approval, with a simplified digital lending journey now in place for loan applications of up to €500,000. 82% of all Agri-loan applications are now made online or over the phone, and the Bank provides over 8,000 loans annually to farm and agriculture businesses nationwide.
Eoin Lowry, Head of Agri Sector, Bank of Ireland said: “As the leading lender to Ireland’s Agri sector, support for Irish farming is in our DNA. That’s especially true as farming families and rural communities face into a period of change. As well as growing and diversifying our lending, we’ve been innovating our products and services to help with the green transition, introducing a simplified lending journey for loan applications of up to €500,000 and providing competitive, flexible, and relevant financial supports. In an era of increasing environmental regulation, rising interest rates and volatility in input, output and land prices, Bank of Ireland stands ready to assist and support farmers.”
The Agri sector currently accounts for almost 20% of Bank of Ireland’s total Business Banking and SME lending, and Bank of Ireland’s dedicated Agri team continues to work closely with farmers. Focussed on helping farmers navigate a rapidly evolving sector, this team works to provide farmers with tangible supports that enable them to implement more environmentally conscious practises, including further improving animal health, welfare, and productivity – as well as advancing biodiversity and water quality measures.