Farmers’ fertiliser application rates, slurry spreading quantities and stocking rates will be reviewed as part of the lending process by Bank of Ireland.
Each farm’s environmental key performance indicators (KPIs) will now be incorporated into the lending process, according to the bank.
Bank of Ireland said it has “tailored” products to support famers looking to make investments that “improve” the environmental sustainability of their farms.
This includes investing in infrastructure that “enhances” a farm’s overall environmental sustainability, such as additional slurry storage units, solar panels, and low-emission slurry spreading (LESS) equipment.
“We remain confident that our overall credit policy and risk assessment approach towards this sector is appropriate to mitigate the challenges and developments facing it,” the bank said.
Stating that it retains a “strong appetite” to lend to the agriculture sector and remains “confident” about the future of agriculture in Ireland, Bank of Ireland said:
“We are committed to supporting the sector as it transitions to a greener footprint.
“[We] stand ready to support farmers with this transition, which will enhance the environmental sustainability of farms nationwide and also contribute to improving overall farm profitability.”
Bank of Ireland
Bank of Ireland has today (Monday, July 31) published its interim report for the first six months of 2023.
The agriculture, forestry and fishing sector’s impairment loss allowance fell from €57 million on December 31, 2022 to €55 million on June 30, 2023.
In the UK, the sector’s impairment allowance rose from €4 million to €6 million during the same period. The total impairment loss remained at €61 million, the report shows.
This movement, Bank of Ireland said, reflects a number of factors including the respective macro-economic outlooks, underlying portfolio activity, and impairment model updates within these specific portfolios.
“The total impairment loss allowance of €61 million reflects offsetting impacts within these portfolios,” the bank said.