Banks optimistic about the future of agriculture
However, they recognise that there will be challenges ahead, particular-ly price volatility when prices could drop well under 30 cent per litre. The key criteria for borrowing are capacity to repay and the applicant’s ability. Allowance must also be made for unexpected costs.
As part of their loan applications, farmers must submit a proper farm plan together with records indicating technical ability and performance such as can be got from their Profit Monitor or other records. Maximum loans to developing/expanding farms average about €4,000 per cow.
