Credit unions are seeing a record demand for farming loans, up 33% year on year, according to the Cultivate Credit Union's lending review for the first six months of 2024.
The value of loan applications increased to almost €32.5m for the first six months of 2024, up from €24.5m the same time last year and a jump of 128% on 2022's €14.2m.
Dairy farmers drove the surge in demand for loans with applications increasing by 63% on last year.
Beef farmers remain the largest farming sector for lending and this category saw loan applications increase by 15%.
Today's review also shows that the average loan amount applied for has grown, reaching €38,059 in 2024, up 20% from the previous year's €31,710 and up 35% on the same period in 2022.
Cultivate said this trend highlights farmers' increasing need for larger financing to support both day-to-day operations and long-term investments.
The average loan application from a dairy farmer was €45,568 compared to €35,840 for a beef farmer for the six month period under review.
Meanwhile, the average loan term has extended to 74 months in 2024, an increase of nearly 13%, which shows that farmers are opting for longer repayment terms to manage cashflow and financial planning over extended periods.
The review also reveals that 80% of farmers had an off-farm income in the first half of this year - 88% of beef farmers had an off-farm income compared to 52% of dairy farmers.
The most popular purpose for Cultivate loans in the first half of 2024 were for stocking & working capital (29%), farm equipment (21%), farm buildings (19%), tractor (15%), farm land (7%), land improvements (6%) and jeeps (3%).
Joe Healy, the Chairperson of Cultivate Credit Union and a former IFA President, said the continued rise in demand for Cultivate loans reflects the resilience and ambition of Ireland’s farmers.
"As the challenges facing our agricultural sector grow, from increased costs to unpredictable weather, farmers are turning to Cultivate for quick loan approvals and flexible repayment plans that make sense for their farm," Mr Healy said.
David Malone, the CEO of the Irish League of Credit Unions, said the strong growth in agri lending underlines the critical role which credit unions play in supporting farmers across the country.
"Behind these impressive numbers are individual stories of dairy, beef, tillage and other farmers with different and diverse needs who rely on the support of their local credit union," Mr Malone said.
"As well as understanding the differing needs of the farming community, credit unions fully understand the time pressures facing every farmer. Farmers can choose how and when they wish to engage with their local credit union, be it in person, over the phone or online," he added.
