Bank of Ireland has launched a new partnership with the Nenagh-based Arrabawn co-op to offer its Enviroflex loan package to members.
Following the launch of Enviroflex last year, the sustainability-linked loans are now available to Arrabawn co-op milk suppliers who are actively engaged in implementing a range of sustainable initiatives to reduce their farms’ environmental footprint.
Eligible milk suppliers must be Arrabawn co-op members, participants in the Bord Bia Sustainable Dairy Assurance Scheme, and will also need to undertake a number of sustainable actions on their farms.
To qualify for Enviroflex, Lakeland Dairies suppliers must be actively engaged in implementing environmentally sustainable initiatives to reduce their farms’ environmental footprint, and currently participating in Lakeland Dairies’ ‘Farming for a Better Future’ farm sustainability programme.
Enviroflex now supports some farmers across some co-ops, such as Bandon, Drinagh and Lisavaird co-op milk suppliers, in conducting milking parlour upgrades, installing wastewater and slurry storage facilities, and investing in renewable and solar technologies.
The loan amount can range from a minimum of €10,000 to a maximum of €500,000, with interest rate variable, at a discounted market rate of 4.88% per annum.
Typically, unsecured loans are available for up to €120,000, with a standard term of seven years. A longer term is available for secured lending.
Enviroflex
Bank of Ireland, agricultural development manager, Pat Byrnes said: “A huge number of farmers looking to enhance their farms sustainability have already availed of this innovative product, as they look to boost cashflow and finance on-farm developments.
“Our aim in developing Enviroflex has always been to make it available to as many farmers as possible across the Irish agriculture industry and to reward farmers for their sustainability actions.”
CEO of Arrabawn, Conor Ryan said: “Arrabawn’s growth is driven by its members and providing them with access to Enviroflex will support them in implementing long-terms measures that improve the sustainability of their farms and the quality of the products they supply.”
Niall Matthews, chairperson of Lakeland Dairies, said: “At Lakeland Dairies, we are constantly looking to provide our farm families with innovative solutions that will support them on their business and farming journey.
“Access to affordable finance is a challenge for many so we are thrilled to partner with Bank of Ireland on the Enviroflex offering. With its competitive rates, Enviroflex is another key tool available to our farm families to carry out necessary on-farm investments or futureproof their holding for subsequent generations.”
Bank of Ireland has said that it has 82,000 farm customers on its books, and that this partnership furthers Bank of Ireland’s ambition of providing a range of sustainable finance products that are “carefully designed to help make real, impactful changes”.