Exclusive report: Farmer demand for Cultivate loans grows 27% in 2024

Cultivate Credit Union’s 2024 annual lending review reveals that the value of Cultivate loan applications has increased by 27% on 2023 to €64,326,580. This marks the sixth consecutive year of this trend, with the value of loan applications up 338% compared to 2019 levels. This continued growth reflects Cultivate’s commitment to farmers as they have extended the loan offering from 14 credit unions to 54 credit unions across 175 office locations. Established in 2017, Cultivate is an initiative of a group of credit unions across 175 locations in the Republic of Ireland that provides short to medium term loans built specifically for the growing needs of its farming members.

Busiest period for loan applications

Borrowing activity remained relatively steady throughout 2024, April was the busiest month, constituting 11% of all applications. While December recorded the lowest demand, accounting for only 6% of total applications. This pattern mirrors trends observed in 2020, 2021, and 2023 highlighting a preference for on-farm investments during the summer months. April was the busiest month for applications from dairy farmers, accounting for 13% of total dairy applications while May was the busiest month for applications from beef farmers, also representing 12% of total beef related applications.

How did the beef and dairy sectors compare in 2024?

The average loan application from a dairy farmer was €49,898 in comparison to €38,153 for a beef farmer. Dairy farmers were also bigger landowners, owning on average 46 HA of land in comparison to the 30 HA owned on average by beef farmers. Off-farm income continues to be a major factor for beef farmers as 88% of applicants had some form of off-farm income, compared to 55% of dairy farmers having off-farm income. The most common debt level for beef farmers was €133,427 (+18.5%) while dairy farmers were managing over one hundred thousand more than that, at €238,140 (+15%).

What are Cultivate loans used for?

The most popular purpose for Cultivate loans was for stocking & working capital (26%). The other most popular loans were for farm buildings (21%), equipment (20%) and tractors (15%). These loan purposes underline the importance farmers are placing on investing in their farms.

National Cultivate Week takes place all this week

Robert Troy, Minister of State at the Department of Finance with special responsibility for Financial Services, Credit Unions and Insurance, officially launched National Cultivate Week which takes place all this week with events taking place nationwide. This annual event brings together credit unions and their members to celebrate Irish farmers and the vital role they play in sustaining local communities and the wider economy. Credit unions across the country will mark the week with a wide range of national and local events, offering opportunities to connect with farming families, highlight supports available through Cultivate loans, and showcase the strong relationship between credit unions and the agricultural community.

Therese Conway, newly appointed CEO of Collaborative Finance - the organisation behind the Cultivate brand said:

“National Cultivate Week is a celebration of Irish farmers and the communities that support them - and an opportunity to show how credit unions are stepping up to meet their needs. Cultivate loans are built around the realities of farm life: flexibility, speed, and a real personal service. The surge in demand for Cultivate loans since it launched in 2017 is proof that this approach works. We’re proud to have the support of Minister Robert Troy and we look forward to meeting farmers at events across the country during National Cultivate Week”.