Forestry Finance Package

Irish farmers are increasingly looking to develop and enhance their farming enterprises. Forestry may provide an appealing alternative for some farmers. Afforestation Grants and Premium Schemes can provide an attractive proposition for farmers looking to invest in forestry either through altering their existing enterprise or through the purchase of additional land.

AIB's forestry package has two distinct elements:

Bridging Finance

Bridging finance is available to farmers/non-farmers who have been approved by the Forest Service to establish a forestry plantation under the terms of the Afforestation Grants and Premium Schemes and who are seeking to bridge receipt of the relevant Establishment grants.

Key Features

• Finance up to a maximum of EUR5,500 per hectare is considered for the establishment of new forests depending on the level of grant approval, which is determined by category of the planted lands and the tree species planted,
• Loan repaid on receipt of establishment grants,
• Competitive interest rate, and
• Forestry grants mandated to loan account to facilitate ease of loan repayment.

Development Finance

Development finance is available to those participating in Afforestation Grants and Premium Schemes and who wish to maximise their additional repayment capacity that the annual forestry premia creates. Borrowing requests will be considered to:

• Purchase land for new forestry plantation;
• Leverage repayment capacity of existing/new forestry premia to fund other farm/non-farm investment and/or restructure existing borrowings
  
  

Key features

• Individual borrowing amount will be determined by your forestry premia and any additional repayment capacity from other activities,
• Terms of up to 15 years considered,
• Option to avail of a holiday on principal repayments for two non-consecutive years at any stage of the loan period*
• Competitive interest rate, and
• Forestry premia mandated to loan account to facilitate ease of loan repayment
  

*The above option may impact on the repayment amount and/or term of the loan.

Further information

Find out more about our extensive range of farming products and services by calling into your local AIB branch.

Important / Regulatory Notice

Full details can be found in the AIB Terms and Conditions governing Business Lending brochure, a copy of which is available from your local AIB Branch.

Lending criteria, terms and conditions apply. Credit facilities are subject to repayment capacity and financial status and are not available to persons under 18 years of age. Security may be required.

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