The unique challenges of the agriculture sector require tailored financial solutions. Many Irish financial institutions are cognisant of this and offer specific farm lending and the opportunity to use land as an asset class, as well as sustainability-linked finance and the investment required to support climate targets and future growth.
Mike O’Halloran, chief executive of Fexco Asset Finance, says the company provides flexible funding solutions to farmers to acquire equipment and machinery, typically through leasing or hire purchase.
“Asset finance helps farmers to spread the cost of essential assets over time, improving cash flow and efficiency, while enabling investment in vehicles, plant, technology and other income-generating equipment, rather than lending against property or land,” he notes.
“At Fexco, we’re committed to working with farmers to structure finance options best suited to their individual needs. Repayment plans can be tailored to align with farm cash flow and, where relevant, the cost savings generated by the sustainable assets being financed.”
Cultivate is an initiative of a group of credit unions that provides short-to-medium-term loans for farming families wishing to ensure the viability of their business while futureproofing it in a changing climate.
Cultivate was designed specifically for the way farming works, says Therese Conway, chief executive of Collaborative Finance. “This includes seasonal income, unpredictable cash flow and investment needs that don’t fit neatly into standard lending products.”
Farmers can borrow up to €100,000 unsecured for up to 10 years, or up to €300,000 secured for up to 30 years with Cultivate Secured, from participating credit unions. These loans can be used for stock purchases, machinery, farm buildings, land improvement and working capital. Repayments are flexible, Conway points out; they can be weekly, fortnightly or monthly, and can be structured around the way farm income arrives, whether that’s a monthly milk cheque, a seasonal cattle sale, or a combination of farm and off-farm earnings.
Cultivate offers an alternative to traditional bank finance for Irish farmers. Some 70 per cent of Cultivate loans go to beef farmers, with more than 80 per cent of applicants having off-farm income.
“This is a profile that doesn’t always fit the mainstream lending model but is absolutely the reality of farming in Ireland today,” Conway says. “Most of the farmers coming through our doors don’t fit the traditional lending profile. They have off-farm jobs, they farm part-time, their income arrives at different points in the year. But they’re investing in their farms and they’re serious about it.”
The underlying value of Irish farmland continues to back farmers’ ability to access finance. Conway points out that the national average price of agricultural land rose by around three per cent in 2025, a moderation from the stronger growth of recent years, and demand continues to outstrip supply in most regions.
“For farmers, land remains a strong long-term asset,” she notes. “Through Cultivate Secured, farmers who own land can use it to secure larger or longer-term borrowing, up to €300,000 over 30 years, to invest in the productive capacity of their farm. That might mean upgrading infrastructure, expanding a herd or making the kind of capital investment that pays back over years rather than months.”
“A very significant share of Cultivate lending already goes toward investments that support both productivity and environmental outcomes: new farm buildings with better slurry management, upgraded equipment, and infrastructure that enables more efficient farming,” Conway says. “The line between a good farm investment and a sustainability investment is often the same line.”
What the credit union model offers is accessibility, she says. “There’s a lot of talk about sustainability-linked finance, but the reality is that most of the farmers who need to invest in their farms to meet climate targets aren’t being reached by the products on the market. They’re beef farmers, suckler farmers and mixed-income households. Cultivate is already in those communities, lending to those farmers, through credit unions they know and trust.”
Bank of Ireland is offering “green loans” such as Enviroflex to the growing cohort of young farmers who bank with it, notes Eoin Lowry, the bank’s head of agri.
“These are particularly targeted at young farmers where they can avail of discounted rates for taking on sustainable investments such as installing solar panels or reduced-emissions slurry applications, or taking on regenerative farming practices,” he says.
Young farmers can avail of unsecured loans with Bank of Ireland if they do not hold any land and can borrow up to €120,000, he adds.