Local farmers lobby banks in bid to ease lending for plans

Local farmers lobby banks in bid to ease lending for plans

24 July 2013

A FARMING lobby group has launched a campaign to persuade banks to lend more to farmers taking on renewable energy projects.

Down District Farmers for Renewable Energy (DDFFRE) is aiming to put pressure on Northern Ireland’s banks which they claim have a poor record of lending for such projects.

DDFFRE was formed late last year by local farmers who were finding it difficult to get planning permission for wind turbines in Down District.

Now the farmers have turned their attention to banks and recently met with representatives of Bank of Ireland, the first in a series of meetings they are planning with all the major local banks.

The delegation claimed Bank of Ireland has only lent money to farmers on 10 renewable projects across Northern Ireland in the past few years.

Speaking after the meeting several farmers said the Bank understood their position and had agreed to attend a meeting of DDFFRE in the near future.

John Carville, of Drumsnade near Drumaness, felt the bank was beginning to understand that diversifying into renewable energy actually reduced the risk of a farm enterprise, as it added a new and reliable stream of income.

“It seems that somehow they had it in their heads that such a project increases the risk of borrowing for a farm enterprise,” said Mr. Carville.

Edward Carson, of Tyrella, said assessing the success of renewable energy projects “is not rocket science.”

“There are no nebulous sales or financial projections to be made here. All we need to know is the standard average radiance on a site for a photovoltaic system, or the norms for local wind speed for a wind turbine. After that the figures do themselves,” he said.

“There are no energy input

costs, just God’s gift of free energy and how much the capital cost is

for the farmer to convert it to usable energy.”

Paul Byrne, of Ballygallum near Downpatrick, agreed and said: “ I hope we have reached a turning point here with finance for renewable energy projects and welcome the banks agreement to come and meet us locally.”

The farmers were accompanied to the meeting by Down councillor Cadogan Enright and South Down MLA John McCallister.

Mr. Enright said Bank of Ireland managers agreed with the delegation’s assessment that it has been reticent in lending to farmers who are expanding into renewable energy.

Mr. McCallister said the banks appear to have moved from one extreme of throwing money at any project a few years ago, to a situation now that even a farmer with a project that is cash flow positive with a government guaranteed customer for 20 years, cannot get funding.

“I welcome Bank of Ireland’s apparent change of attitude, and I will work with my fellow MLA’s to raise this at the highest level with other banks,” he said.