Bank of Ireland has launched a €100m loan fund for farms to support farmers dealing with surging input costs after it was revealed that the price of fertiliser and feed have increased 178% and 27%, respectively, in the past year.

The bank's Agri Assist loan fund has been specifically designed to help farms handle rapidly increasing costs, and the lender said that, as part of the National Fodder and Food Security Committee, it recognises the "challenging environment" farmers currently face.

Successful applicants can avail of working capital of up to €100,000 for their farm at a rate of 3.86% with extended repayment of up to three years to finance the growing cost of grass, silage and tillage crops, pay merchant or co-op bills for feed or fertiliser.

"Bank of Ireland currently provides more than 50% of new lending to the agri sector, and our primary role is to support and advise farmers on meeting challenges as they arise," said Eoin Lowry, head of the agri sector at Bank of Ireland.

"There is no doubt that the increasing price of farm inputs, has placed extra strain on farm cashflows. Given that only one third of farmers currently have borrowings, we have launched the Agri Assist loan fund to ease some of this strain.”

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“This new €100m fund provides an additional level of support to farmers so that they can ensure they have sufficient cash to manage their farms through the summer months. Bank of Ireland is proud to be the first Irish bank to bring this to market, and has worked as part of the National Fodder and Food Security Committee to devise our own practical solution that will help farmers, many of whom may never have taken out a loan up to now.

"I would encourage farmers looking for assistance to come and talk to us, so that we can explore the steps on offer to enhancing their financial wellbeing."

Bank of Ireland said it will keep the issue under constant review, consulting with farmers as the issue evolves, with food commodity prices having hit record highs in the wake of Russia's invasion of Ukraine.

More than 1,000 Bank of Ireland accounts have been opened for recently arrived Ukrainians, and the bank has refunded charges for anyone sending money to Ukraine and Moldova, in addition to supporting displaced Ukrainians through its vulnerable customers unit.

Photo: Eoin Lowry and Minister for Agriculture Charlie McConalogue. (Pic: Julien Behal)