Cultivate during Covid-19
11 May, 2020Irish farmers have seen a large decrease in beef production as export markets remain closed and the closure of restaurants – most notably those such as Supermacs and McDonalds who would have bought in large qualities – remain in place. Although retail sales of beef are up, there’s been a larger decrease in demand from commercial outlets across the EU. Dairy has suffered in the same way, as retail demand plummets and milk prices drop.
Many farmers experiencing a reduced turnover have had to look to government supports. We’ve outlined these below, as well as how credit unions can help.
Farming Grants and Supports
The Irish government are offering farmers who have incurred a substantial loss of income as a result of restrictions, the Covid-19 Pandemic Unemployment Payment. This means that full-time farmers who cannot sell their stock and therefore have no income can claim the payment. Part-time farmers who have lost off-farm employment and who have suffered a substantial loss of income can also qualify. More details here.
The EU have pledged an €80 million COVID-19 aid package for farmers across the European Union but many farmers here weren’t enthusiastic about the package, saying it fell short of what was needed.
Credit Union Farming Supports
As credit unions touch on all parts of their community, we now offer the Cultivate Agri Loan to our farming members, with benefits such as free loan protection insurance, tailored repayment plans and a personal service.
If you’re a farmer and have been affected by COVID-19, talk to us about financial advice, payment breaks or financial support.
What is Cultivate?
Twenty-six credit unions across Clare/Limerick, Cork, Galway, Kerry, Offaly/Westmeath and Tipperary launched the Cultivate Loan – an initiative that provides short to medium term loans built specifically around the needs of farming members. The loan, developed under stakeholders from groups such as Teagasc, agri businesses, IFAC and Farm Relief Services, has a competitive interest rate of 6.75% APR*, a swift approval time and flexible repayment options.
The loan seeks to cover areas such as new or second-hand machinery, the upgrade of buildings or facilities the purchase of livestock, working capital and to increase cash flow. In a report conducted in 2019, the initiative found that the average loan amount given was €23,554 over a 5.5 year period, with stocking and working capital hailed as the most popular loan choice. You can apply for the Cultivate loan even if you have never been a member of the credit union before. Contact us on 022 21121 to speak with a dedicated Cultivate Loan Officer today.
