Agri-Food and the Economy

The agri-food sector is Ireland’s oldest and largest indigenous exporting sector. In 2020, the sector accounted for over 6% of GNI and 9% of exports in value terms. The sector accounts for 38% of total indigenous exports and over 60% of indigenous manufactured exports. The sector employed 163,600 people or 7.1% of total employment in 2020; outside of Dublin and the mid-east region, the sector provides between 10% and 14% of employment. Some 137,500 farms producing over €8.2 billion in output; over 770,000 hectares of forest; and over 2,000 fishing vessels and aquaculture sites producing fish with a value of €700 million, underpin the sector. In Ireland, agri-food is an integral part of the economy and society, and especially so for our rural and coastal communities.

Access to Finance

Access to finance is a crucial business need. As well as liaising with the main banks on the specific liquidity and financing needs of farmers, fishers, foresters and food businesses, the Department of Agriculture, Food & the Marine works closely with the Department of Enterprise, Trade and Employment and the Department of Finance to ensure adequate access to financial supports across the agri-food sector. This partnership approach has yielded important targeted supports for businesses, assisting them in mitigating the financial impacts of Brexit, COVID-19 and most recently the crisis in Ukraine. Such co-operation offers the benefits of shared responsibility and consistent policymaking, as well as other synergies. This range of supports have been delivered with the Strategic Banking Corporation of Ireland (SBCI) and with the support of the European Investment Bank Group (EIBG) to address the current economic disruption.

The Department of Agriculture, Food and the Marine, in cooperation with other State bodies, continues to explore additional funding mechanisms for the agri-food sector and for SMEs generally. In addition, the Ireland Strategic Investment Fund (ISIF) has also been exploring opportunities for providing funding to the agri-food sector.

The advice to farmers, fishers and agri-food businesses is to engage regularly with their financial providers to ensure adequate cashflow and investment funding. Early intervention is key to dealing with economic impacts in an efficient and effective manner.

DAFM continues to engage with the banks and the Department of Finance in this regard.

Credit Unions

The Cultivate loan is specifically designed to provide loans tailored to the needs of farming communities. Cultivate enables farmers to develop and future proof their business by providing quick and easy access to finance. It offers short to medium term unsecured loans up to €75,000 for up to 10 years at a variable interest rate of 6.55%, (typical APR 6.75%) or secured loans up to €300,000 for up to 30 years at a variable interest rate of 5.25% (typical APR 5.38%) to fund large scale capital expenditure. Eligible loan purposes include upgrading farm infrastructure and buildings, purchasing new equipment to increase farm output, working capital, increasing cashflow and stock levels.

Microfinance Ireland (MFI)

MFI provides small loans through the Government’s Microenterprise Loan Fund to help start-ups and established businesses to get the finance they need for their business. MFI provides loans to micro enterprises (<10 employees and annual turnover <€2m) who may encounter difficulties accessing funding from banks and other commercial lenders. Unsecured loans are available from €2,000 to €50,000 at fixed rates of interest for terms of 3-5years. Loans can be used for several purposes including startup costs, cashflow and business expansion.

MFI are also approved by the Minister for Agriculture, Food and the Marine to provide loans to micro-enterprises in the agri-sector who do not satisfy the eligibility criteria of conventional lending institutions. MFI are also an approved on-lender for the SBCI Agriculture Investment Loan Scheme (AILS). Finance is available for working capital (including cashflow/liquidity needs) or capital expenditure (not covered by SBCI AILS scheme).

Other Non-bank Lenders

Non-bank lenders provide increased choice for borrowers, competition for banks, financing in underserved market segments, and new products and funding models. This has been demonstrated by their inclusion in the government’s COVID-19 Credit Guarantee Scheme (CCGS), Ukraine Credit Guarantee Scheme (UCGS) and the Growth and Sustainability Loan Scheme (GSLS), as well as a range of SBCI loan schemes. With the recent exit of Ulster Bank and KBC there is likely growing role for non-bank lenders in financing SMEs.

Finance Ireland - The largest of the current non-bank lenders in the Irish market, Finance Ireland operates in various sectors, including agri-finance. Its broad portfolio of products includes the Milk Flex Loan, Fund Equip Loan and Machinery & Equipment finance.

Close Brothers - Invoice and asset finance lending specialists supporting SMEs, including primary producers, to purchase/refinance capital equipment or improve cash flow.

Other supports

There are a variety of other Government supports for investment and development, not least under the Common Agriculture Policy (CAP). The CAP Strategic Plan 2023-2027 includes a Capital Investment Scheme to provide grant support for on-farm investments in Targeted Agriculture Modernisation Schemes (TAMS). A general grant aid rate of 40% applies, with 60% available for Young Trained farmers and Trained Women Farmers.

Bord Bia’s Online Learning Zone provides a space where Bord Bia Small Business clients can enhance and develop skills on topics most important to them and their business. Users can enrol in a multitude of online modules such as, ‘Diversification into Foodservice’ and ‘Preparation for Buyer Meetings’ and many more. Each module offers concise and comprehensive insights while also providing you with the necessary skills and learnings to apply to everyday decision making.

National Enterprise Hub is a single source for all government supports for businesses, including those in the agri-food industry. Discover a wide range of government supports tailored for Irish businesses. You can find supports for everything from cash flow to sustainability, helping you need to thrive and grow, all in one convenient place.

Food Wise 2025

Female Rural Entrepreneurs

The Minister for Agriculture, Food and the Marine announced a competitive public procurement procedure under the 2024 Rural Innovation and Development Fund for the provision of a Service for the Development and Delivery of a Programme for Nascent Rural Female Entrepreneurial Development seeking proposals from suitable, experienced service providers who have the capability and vision, to develop and implement a tailored work programme to address the skills, enterprise and capability gaps of rural nascent female entrepreneurs and takes into account the barriers which can limit entrepreneurial activity in rural areas.

The contract was awarded to Fitzsimons Consulting who runs the ACORNS programme.

ACORNS (Accelerating the Creation Of Rural Nascent Start-ups) programme is designed to encourage a stronger level of enterprise development in rural areas targeted at emerging female entrepreneurs. It provides a tailored, focussed approach that takes into account the specific challenges which face female entrepreneurs generally as well as barriers which can limit entrepreneurial activity in rural areas. The Acorns 10 programme runs from October 2024 until April 2025 and provides up to 50 entrepreneurs with the knowledge, support and networking opportunities to meet and exceed their aspirations.

Further information is available from www.acorns.ie

Social Farming

Following a competitive public procurement procedure under the 2021 Rural Innovation and Development Fund, the Minister for Agriculture, Food & the Marine, Charlie McConalogue T.D. announced the successful tenderers that will receive funding totalling almost €377,000 for social farming model projects:

• Leitrim Integrated Development Company CLG – for the provision of a Social Farming Model Project where social farming is mainstreamed as an option for people accessing supports across a range of sectors and services and where placements are fully commissioned.
• Down Syndrome Irl (Cork Branch) – to provide opportunities for participation in a purpose-built farm, the Field of Dreams with horticulture and animal care elements which will bring long lasting wellness benefits to participants.
• South Kerry Development Partnership – for a Social Farming Model Project which will increase participant and host farmers engagement so that the social farming opportunity is available to more people in Kerry and to offer choice to people with disabilities to engage with farm families in meeting their personal life choices.
• IRD Duhallow – for a Social Farming model project which will promote rehabilitation, social inclusion, training and improved quality of life in a non-clinical setting using agriculture including plants and animals for people across a wide spectrum of disability.

In addition to the model projects, the contract with Leitrim Integrated Development Company CLG for the provision of a Social Farming Network is also been extended for a further year. The extension of this contract with associated funding of €400,000 will allow for the further development of the national social farming network known as “Social Farming Ireland”. Social Farming Ireland works in collaboration with other Local Development Companies, namely West Limerick Resources, Waterford Leader Partnership and South West Mayo Development Company where regional Social Farming development officers are based.

Social farming is the practice of offering, on a voluntary basis, farming and horticultural participation in a farming environment as a choice to people who avail of a range of therapeutic day support services. These operations are run in a number of settings ranging from working family farms, local community initiatives through to more institutional frameworks and are widely practiced across Europe.

Experience has shown that well run operations provide an opportunity for inclusion for disadvantaged groups to increase their self esteem and improve health and well-being. When operating from a working family farm, these initiatives support farm diversification and help farmers connect with the wider community. From a Government perspective, they also provide a collaborative framework for different Departments and agencies to work together.

Agri-Food Tourism 2025

• Agri-food tourism broadly is the practice of offering an activity or activities as part of a visit to areas of well-known agricultural produce and to sample and taste the local or regional cuisine or specialties. Agri-food tourism includes a wide variety of activities that involve the links between agriculture and the food produced at the local or regional level. It may involve staying on farm or touring food trails and events, participation in agricultural endeavours or buying produce direct from a farm or market. Agri-food tourism also encompasses local food, farmer and artisan market schemes that support and are paired with local and seasonal food producers and artisan crafts.

Support for agri-food tourism projects (that may also include rural food markets) is provided under the Rural Innovation and Development Fund. Applications should be made on the attached document. The deadline for submission of applications is 12.00 noon on 24th February 2025. Applications will be assessed through a competitive process for funding of proposed projects.

Total funding of almost €300,000 is available for projects supporting agri-food tourism initiatives (which may also include rural food markets). The maximum amount payable to any project is €25,000.

• Applications should be made via the Call for Proposals application form which is available on our website below:

Food Waste Reduction

The Minister for Agriculture, Food, Fisheries and the Marine has provided support under the Rural Innovation Development Fund for organisations and economic operators involved in Food Waste Reduction to promote reducing food waste generated by primary producers and food businesses in rural areas. A call for proposal was issued in 2024 with the objective of providing funding to activities or items that relate to the promotion and/or development of innovative food waste reduction projects in 2024. The funding was awarded to FoodCloud with an option of extensions for three years.

Annual Review and Outlook for Agriculture, Food and the Marine 2020

The Annual Review and Outlook provides up-to-date information and statistical analysis from a variety of sources, to provide a detailed overview of Ireland’s agri-food sector and an outlook for the future.

A strong evidence base is essential for policy formation and implementation. The information and statistics included in the Annual Review and Outlook is intended to assist in policy analysis and debate in the sector. The agri-food sector is Ireland’s most important indigenous industry, playing a vital role in Ireland’s economy. Irish food is produced by thousands of farmers, fishers and agri-food companies around the country.

137,000 farms produce over €8 billion in output; and we have over 770,000 hectares of forest and over 2,000 fishing vessels and aquaculture sites. The agri-food supply chain stretches from rural and coastal areas all across Ireland to the UK, Europe and further to markets in the Americas, Asia and Africa. In 2019 Ireland’s food and Agri- foods products were exported to over 180 markets worldwide and valued at €14.5 billion, a 63% increase from €8.9 billion in 2010. The sector is thriving and continues to evolve and meet the needs of its customers, both domestically and internationally.

This year’s publication includes chapters on the agri-food sector & the economy, farm incomes & structures, agricultural commodities & inputs, trade, the environment, forestry, marine and EU & international policy.

Public Consultation

• Public Consultation on Irelands Agri-Food Strategy to 2030
• Public Consultation on Scoping of Environmental Report for the Agri-Food Strategy 2030

Agri-Food Strategy to 2030 - Stakeholder Committee

Stakeholder Committee

The Minister for Agriculture, Food and the Marine Michael Creed T.D. established the Stakeholder Committee to develop Irelands Agri-Food Strategy to 2030 on the 28 November 2019. The composition of the Committee is set out below: