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AIB WILL LOAN €500 million into the farming sector, the bank announced today.
It will also double the size of its agri advisor team to 12.
The bank said that the new fund, which is supported by funding from the European Investment Bank, will provide loans for capital expenditure, working capital and asset finance.
Farmers will also be able to refinance from banks that are exiting the Irish market, switching their loans to AIB.
Minister for Agriculture Simon Coveney welcomed the news: “This funding comes at a crucial time, as farmers make the investments needed to fuel the smart, green growth envisaged in Food Harvest 2020.”
The state-supported bank said that the removal of milk quotas from next year on heralds a major expansion opportunity for the dairy sector.
AIB director of personal, business and corporate banking Bernard Byrne said that the new cash would allow the sector to realise its potential over the coming years.
The investment decisions being made now by farmers are crucial and will have a long term impact on their future. AIB is determined to support the sector by providing both the finance finance required and the specialist knowledge to help farmers grow.
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Great to see us going back to our rootsin a sustainable industry, beats giving it to property speculators and chancers and the farmers will have assets to secure against.
Jeez, one of the biggest sectors of the economy and AIB doubles it’s resources to … wait for it … 12.
Happy days!
Yeah!! They should hire 50, because if the job can be done by 12 people there’s nothing better for controlling costs and returning a bank to profitably than throwing away money and having an extra 38 standing round doing nothing.
140,000 farms in ireland between 12 advisors that’s 11,666.667 each.
Do you really think that this is sufficient to ensure that farmers in need of credit get access to a well assessed credit decision?
I trust the people running the business to know more about the requirements than random sarcastic internet commenters.
Approx 10 major financial institutions, banks, credit unions and specific agricultural lending facilities in Ireland.
Assuming AIB has an equal market share and the customer base review or apply for credit on average of every 2-3 years that would leave a workload of dealing with 9 clients per advisor per week.
Further more it’s not one of the biggest sectors of the economy… It’s 5% of GDP and 8% of employment. It’s one of the smallest
I am actually a farmer. I have found AIB to be very professional. But I am sure that others who post under pseudonyms are convinced that they know more.
Yup, they knew about mortgage lending alright Drew …
On top of that, you should be well aware that not all the lending institutions have an equal exposure to business lending – that’s a silly contention.
Fair point about the GDP though.
Drew is correct. I got finance in 2009. I haven’t requested a face to face since. I have sent in all necessary forms, copies of accounts when needed etc. Advisor calls me twice a year to double check. A great service. I get on with my side of the business without fuss.
Good point Farmer Tom. But will AIB put greenhouse emissions from farming on the table as part of the loan agreements? That’s my worry, and the worry of many pseudonym persons here! And how much collateral will ye have to put up for, say, €100k….30 acres?? More…? Beware of banks bearing gifts Tom!
And I don’t doubt you at all Tom, I do recall serious issues about agri-lending being highlighted during the fodder crisis though which suggests that not everyone shares your experience.
Jaysus Tom, you will have to put up a ‘Tom received a gratuity for the making of this ad’ if you keep posting pro-AIB commentary like that:-)
RP Murphy
Irish dairy farmers are probably the most efficient in the World, not because of any particular gene but because they produce 90% of their milk from grazed Grass and have a world class research arm through Teagasc. The rapidly expanding world population requires more & more food which inevitably leads to a growing need for energy. In Ireland’s case that need is less per kilo produced than the vast majority of other regions. Currently we have a competitive advantage and hence the global success of companies like Glanbia, Kerry etc. Some might say it would be very Irish to strangle that advantage with another ‘global warming’ tax which will do absolutely nothing to prevent the planet’s climate changing like it has done for millions of years. I trust this industry will stay focussed on reality rather than pie in the sky
Not every farm needs access to credit every day!
@james hughes. ‘Very Fortunate’ is the word I would use concerning grass availability in Ireland. Efficiency, discipline, pasture management, CBI just to list a few skillsets, for the majority of farmers in this country, will not even be in their grandchildrens vocabulary, however, mulliker, on the other hand….and check where the majority of Glanbia & Kerry Groups profit eminates from these days James, it ain’t what you think! Re Teagasc, they have some bright chaps but the majority are quill and ink boyos I’m afraid!
AIB already have farms they are called AIB bank branches.
Not sure what the thumbs down thing is all about? Do they not farm money from us already? I got my quarter fees where I have to pay this farmers (bank officials) €47 for using my money and I am not the only one paying this fee. Good luck to Farmers and ”farmers”.
Just don’t take put a pension with them
have your say