Bank of Ireland (BOI), in partnership with Kerry Dairy Ireland, has launched sustainability-linked loans to provide an additional funding option for farmers implementing sustainable farming practices.
The ‘Enviroflex’ loans programme is now live for applicants, the bank said.
Bank of Ireland said it aims to “lead the green transition in the agri-industry by providing discounted flexible finance for farmers”.
Initial applicants will come from suppliers to Kerry Dairy Ireland who are participants of its Evolve Sustainability Programme and are carrying out environmental sustainability measures on their farms.
Bank of Ireland said that the new loan programme continues the banks tradition of “supporting farmers in an evolving sector, looking to reduce their farms’ environmental footprint; increase forestry and tree planting; and improving biodiversity, water quality, and animal welfare practices”.
The partnership is underpinned by Bord Bia’s Origin Green Sustainability Programme and the Teagasc Marginal Abatement Cost Curve (MACC).
The bank said that loans will promote and reward “accelerated sustainable action at farm level”.
Commenting on the new loan programme, Eoin Lowry, head of agri-sector for Bank of Ireland, said:
“Targeted products like Enviroflex are designed to reward farmers who implement more sustainable farming practices with discounted finance options, and we are delighted that Enviroflex is now open for applications from Kerry Dairy Ireland suppliers.
“Applicants can avail of a simplified online journey, and we look forward to making this product available to more farmers across the agriculture industry in 2024.”
James O’ Connell, general manager of Kerry Agribusiness, said: “Kerry Dairy Ireland is delighted to partner with Bank of Ireland in delivering Enviroflex, an innovative financial product.
“Enviroflex, as a sustainability linked loan, enhances our objective of facilitating and accelerating the adoption of more sustainable farming practices,” O’ Connell added.
Milk price to Kerry suppliers
In other news for Kerry milk suppliers, Kerry Group confirmed that its milk price for supplies in October will remain unchanged from the previous month.
The processor announced a base milk price of 32c/L including a further 3c/L milk contract payment, inclusive of VAT for qualifying October supplies.
This represents a combined price of 35c/L, which has remained unchanged since August.
Based on Kerry’s average milk solids for October, the processor said that the milk price return inclusive of VAT and bonuses is 44.94c/L.