€500m fund available for agri-sector

AIB has made a further €500m available in lending facilities to the agri-sector, which comprises around 30% of the bank’s SME loan portfolio.

The fund — aimed at supporting the development of the farming sector via the financing of capital expenditure, working capital and asset finance — coincides with AIB doubling its agri-adviser team to 12 people.

Anne Finnegan, head of agri-sector at AIB, said the bank has seen a significant level of demand for credit from the sector in recent times.

“This is about ringfencing funding and demonstrating our support for the sector; one of the sectors driving demand for credit,” she said, adding the €500m facility is likely to meet the needs of borrowers for this year and next.

Ms Finnegan said there is room for more funds to be made available and said future moves will be led by demand.

Yesterday’s move has been welcomed by the Government.

Agriculture Minister Simon Coveney said: “This funding comes at a crucial time, as farmers make the investments needed to fuel the smart, green growth envisaged in Food Harvest 2020 [the Government’s blueprint for growth in the farming industry].”

“The agri-sector has always been at the heart of our business and, indeed, the Irish economy,” said Bernard Byrne, AIB’s director of personal, business and corporate banking.

“The removal of milk quotas, in 2015, presents the dairy sector with a long-awaited opportunity to expand. The investment decisions being made now by farmers are crucial and will have a long-term impact on their future.”

John Comer, president of ICMSA, said the funding increase and upgrading of AIB’s agri-advisory team was an important vote of confidence in the farming sector, in general, and in the skill and technical ability of the State’s milk suppliers.