Bank of Ireland to beef up agri team

Bank of Ireland is beefing up its agri team with the addition of another 15 managers before the end of this year in an effort to gain market share in what is a growing sector.

The bank recently launched a €1bn fund for lending to the agri sector and in particular to support farming customers for a range of farm investments and improvements to include the purchase of land, livestock and farm machinery.

“Our lending figures to the agri sector in the first half of this year attest to the continuing increase in demand for credit from this very important sector of the economy.

“Our loan approvals for the first half of 2014 have increased by 16% when compared with the same period last year and our approval rate is almost at 90%. In addition, we are currently approving funding for the purchase of over 400 acres of land per week,” said Sean Farrell, head of agriculture at Bank of Ireland Business Banking.

As it stands Bank of Ireland provides more than 50% of all new and increased agri lending, with land acquisition, farm buildings and increased stocking requirements the main drivers of growth.

“The abolition of the milk quota next year has resulted in a significant uplift in investment in this sector, as farming businesses position themselves to benefit from the growth opportunity this provides.

“We anticipate that farming businesses will continue to look to expand their activities in order to maximise the opportunity that the removal of the quota presents.

“We want to play a central role in ensuring they will have the credit necessary to meet their growth ambitions,” added Mr Farrell.