Most CU loans are for beef farmers

BEEF farmers were the main borrowers from Credit Unions last year taking out average loans of nearly €22,000 over a payback period of five-and-a-half years, according to figures released by the farm finance section of the Credit Union movement.

Almost two out of three (64%) farm loans accessed were taken out by beef farmers followed by dairy farmers – one-in-four (26%) – and sheep enterprises, just 6%. Across all farm sectors, the average loan accessed was €23,554.

The Credit Union movement operate a special farm loan scheme called ‘Cultivate’ and in an analysis of loans given out in 2019, it revealed that the main reason for finance was ‘stocking and working capital’ (26%).  Next on the loan priority list for farmers was farm buildings at 19% followed by tractor purchase (14%), land improvement (13%), equipment (11%), farm land (6%) and the purchase of a car or jeep (5%).

The ‘typical’ farmer who borrowed from the Credit Unions had 36 hectares (90 acres) and had a debt figure of just over €110,000 on their farm. Credit Unions in Galway that take part in the Cultivate loan scheme for farmers are: Ballinasloe; Gort; Naomh Breandán (Loughrea and Woodford); St. Jarlath’s, Tuam (also including their Abbeyknockmoy, Corrandulla, Dunmore, Headford, Mountbellew, Moylough and Turloughmore offices).

John Doyle, CEO of St. Jarlath’s CU, Tuam, said that the Cultivate scheme was a specialist provider of finance to farmers who were looking for flexible unsecured loans under €50,000.

“The feedback we’ve received from farmers who take up a Cultivate loan focuses on how easy it is to access the finance.

For more, read this week’s Connacht Tribune.

Get the Connacht Tribune Live app

The Connacht Tribune Live app is the home of everything that is happening in Galway City and county. It’s completely FREE and features all the latest news, sport and information on what’s on in your area. Click HERE to download it for iPhone and iPad from Apple’s App Store, or HERE to get the Android Version from Google Play.