'Milkflex' agri-loan for farmers doubles borrowing limit to €1m
Milkflex founder Billy Kane. Agri-focused lender Finance Ireland is doubling the borrowing limit for its Milkflex product for farmers to €1m. Picture: Colm Mahady / Fennells
Agri-focused lender Finance Ireland is doubling the borrowing limit for its Milkflex product for farmers to €1m, from €500,000.
Milkflex is supported by over 20 cooperatives across the country and is tailored to Irish dairy farmers. To date, Finance Ireland has lent over €350m to farmers under the scheme.
The lender has launched a new 12-year Milkflex loan through which farmers will be able to borrow up to €1m on an unsecured basis Borrowers will also be able to fund land purchases with the loan, subject to security undertakings. The funding can be used across a wide range of purposes from investment in infrastructure and livestock to environmental initiatives, technology upgrades, and working capital needs.
Milkflex loans are designed to link repayments to the seasonality of dairy farm milk receipts. Loan repayments are deducted automatically from milk receipts via the coop.
Repayments also react to significant changes in milk prices, reducing or pausing when milk prices fall below certain levels and increasing temporarily when prices rise above certain levels.
"Along with increased borrowing limits and a new ability to fund land purchases, dairy farmers can avail of unique product features including repayments that reflect the seasonal milk supply curve, protection against milk price volatility and disease outbreaks," said Finance Ireland chief executive and founder Billy Kane.
“We are delighted to launch this new and enhanced Milkflex product, further supporting both established dairy farmers and new entrants to the dairy sector across the country."
'Flex events' facilitate the reduction of principal and interest repayments by 50% for a six-month period if the base reference milk price is 38cpl including VAT or below for three consecutive months.
If the base reference milk price is 34cpl including VAT or below for three consecutive months, principal and interest repayments can be reduced by 100% for a six-month period.
If the base reference milk price rises to 60cpl for three consecutive months, then repayments increase by 25% for a six-month period.
Flex events also protect against the risk of disease outbreak. If output is reduced by 30% or more year on year, repayments can be suspended for six months.
