The value of loans sought by farmers has increased by one-third to more than €32m in the first six months of 2024, according to new data from credit unions.

The latest review of the Credit Union’s farmer lending initiative Cultivate, showed that in the first half of 2024, the value of farm loan applications rose by 33% when compared with over €24m in the same period in 2023.

Loan approval rates were over 90% and in 11 credit unions which received 294 loan applications, some 278 were approved - a 93% approval rate.

In the first half of 2022, in excess of €14m worth of farm loans were sought, a 128% rise on 2024.

The average loan amount applied for through Cultivate grew by 20% to €38,059 when comparing the first six months of 2024 with the same period the previous year.

Farmers are not only borrowing more, but they are also opting for longer repayments, with the average loan term extending to 74 months in 2024, up nearly 13% from the previous year.

The analysis highlighted that dairy farmers drove the surge in demand for Cultivate loans.

The value of dairy farmer applications increased by 63% comparing the first half of this year with the last and by 202% on the same period in 2022.