Bank of Ireland has launched a new partnership with Bandon, Drinagh and Lisavaird Co-ops to offer the Enviroflex loan package to its milk suppliers.
Following the launch of Enviroflex last year, the sustainability-linked loans are now available to Bandon, Drinagh and Lisavaird co-op milk suppliers, who are actively engaged in implementing environmentally sustainable initiatives to reduce their farms’ environmental footprint under the Carbery FutureProof sustainability programme.
The loans incorporate discounted flexible finance provided to farmers conducting milking parlour upgrades, installing wastewater and slurry storage facilities, and investing in renewable and solar technologies.
Bank of Ireland partnership
Applicants must be Bandon, Drinagh and Lisavaird co-op milk suppliers and participants of the Carbery FutureProof sustainability programme.
Applicants also need to provide Bank of Ireland with the carbon footprint of their farm.
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”.
CEO of Carbery, Jason Hawkins said: “We know our farmer shareholders value sustainability and want to farm in a sustainable way – 85% of our suppliers taking up our FutureProof sustainability bonus in its first full year clearly proved that.
“However, some sustainability measures, like all improvements, require investment. With this in mind we welcome this Enviroflex scheme from Bank of Ireland, which rewards farmers who can demonstrate their sustainability credentials and ambitions.”
Bank of Ireland, agri development manager, John Fitzgerald said: “Bank of Ireland is delighted to make the Enviroflex scheme available to Bandon, Drinagh and Lisavaird Co-op milk suppliers.
“Since first launching Enviroflex we have been delighted with the take-up of the sustainability-linked loans, and the options it provides farmers looking to improve cashflow and finance on-farm developments over a longer period.
“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.”
Bank of Ireland loans
The loan amount can range from a minimum of €10,000 to a maximum of €500,000.
Bank of Ireland has said that the interest rate is variable and is currently at a discounted market rate of 4.73% per annum, for those participating in the Carbery FutureProof sustainability programme.
Typically, unsecured loans are available for up to €120,000 and there is a standard term of seven years.
Earlier this month, Bank of Ireland announced that it was also teaming up with Sligo-based co-op, Aurivo to provide the sustainability loans.
Carbery FutureProof
Carbery’s FutureProof sustainability bonus is available again to all farmer shareholders who meet the qualifying criteria. The measures were chosen for their environmental impact.
These are:
- Agreeing to an ASSAP (Agricultural Sustainability Support and Advisory Programme) water quality assessment;
- Economic Breeding Index (EBI);
- Milk recording four times a year;
- Using protected urea.
The co-op has said that there was “excellent” uptake on the bonus in 2023, with 84% of suppliers and more than 90% of Carbery’s milk pool included in FutureProof 2023.