Eoin Lowry, head of agri with Bank of Ireland, has confirmed that Irish agriculture cleared €250 million worth of debt over the past 12 months.

This brought total borrowings for the industry down to a figure of €2.8 billion.

Speaking on day three of the 2022 National Ploughing Championships, he said that the farming industry entered 2022 in very good heart.

“Annual profits for the previous year had increased by 21%. Credit utilisation rates were also at an historically low level,” Lowry said.

“This general feeling of confidence within the industry was maintained up to the point of Russia invading Ukraine.”

The bank representative’s comments coincided with the confirmation from Teagasc that Irish agriculture continues to perform well.

Where tillage is concerned, farmers earned, on average, €57,939 last year. Favourable weather conditions in 2021 resulted in varying yield increases for the major crops.

Cereal prices at harvest in 2021 were up on the 2020 level, boosted by relatively low international stocks.

This resulted in an increase in margins on the average tillage farm last year. Gross output increased by 44% to €159,129 on the average tillage farm in 2021, according to Teagasc’s finalised National Farm Survey results.

Lowry represents Bank of Ireland on the National Fodder and Food Security Committee. On foot of this group coming together, the bank established the €100 million Agri Assist Loan Fund, specifically to help farmers deal with rising farm input costs such as feed and fertiliser.

The money is available over three years at a variable interest rate of circa 4%.

“The fund can still be accessed by farmers over the coming months,” Lowry said.

“Agriculture could find itself facing a financial pinch point over the coming months, given the continuing speculation, where the future cost of all farm inputs is concerned.

“It is in this context that the Agri Assist Loan Fund monies can play a role for Irish farming businesses. It represents a very valuable source of working capital for Irish farmers.”

The loan is specifically designed to support farmers managing their businesses through a period of high price inflation for key inputs such as energy, animal feed and fertiliser.

It provides additional working capital for farmers to finance the cost of growing grass, silage, and tillage crops.

It will also cover the funding to pay merchant or co-op bills for animal feed and fertiliser.

Bank of Ireland is making no secret of its intention to secure as many former Ulster Bank customers as possible.

“We are talking about 10% of the entire banking market,” Lowry commented.

“This covers agri-business, personal banking and the economy as a whole.

“It represents a unique opportunity for Bank of Ireland to substantially increase its customer base,” he added.