The Sligo based Aurivo Co-op has teamed up with Bank of Ireland to launch a sustainability linked loans product for its members.
The Enviroflex scheme was first launched by Bank of Ireland last November and aims to “support farmers who are taking on environmental initiatives on their farms and who are on a journey to reducing their farm’s environmental footprint”.
Aurivo Co-op is the latest co-op/processor to participate in the scheme which also includes Kerry Dairy Ireland and Dairygold.
According to Bank of Ireland Enviroflex is “underpinned” by Bord Bia’s Origin Green Sustainability Programme and the Teagasc Marginal Abatement Cost Curve (MACC).
Aurivo Co-op
Donal Tierney, Aurivo chief executive, said today (Monday, June 17) that Enviroflex loans offer “milk suppliers targeted finance that will support on-farm environmental initiatives and will also help Aurivo meet our environmental targets.”
In order to apply for an Enviroflex loan eligible milk suppliers must be Aurivo Co-op members and participants of the Aurivo Future Milk Programme.
They also need to agree to undertake “a number of sustainable actions” on their farms.
Mark Glennon, Bank of Ireland‘s agri development manager said that since the bank first launched the Enviroflex scheme it has seen “significant demand” from farmers for the product who are looking to enhance their farms sustainability and because of the options it provides them 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,” Glennon added.
Some of the key features of the scheme include that the loan amount can range from a minimum of €10,000 to a maximum of €500,000 with flexible repayment terms.
But Bank of Ireland has also stressed that applicants must provide a document as proof of participation in a sustainability scheme and be ready to provide it as part of the loan application.
Under the terms of the scheme refinancing or restructuring of existing Bank of Ireland loans is not permitted and working capital and land purchase is also excluded.