Farm Ireland

Thursday 18 January 2018

John Deere enter farm finance fold

John Deere have joined AGCO and JCB ECI in offering finance packages
John Deere have joined AGCO and JCB ECI in offering finance packages
Darragh McCullough

Darragh McCullough

Another tractor manufacturer has launched a finance package, as John Deere announced a deal with Bank Ireland at the Farm Machinery Show last week.

They join AGCO and JCB ECI in offering special subsidised machinery finance for new tractors, following the continued absence of traditional finance houses such as Permanent TSB from the market.

Finance companies reported a better than expected trade on the back of the buoyant mood at this year's Farm Machinery Show.

"We've done more deals since we launched our finance package in January than we did all last year," said JCB ECI's Denis Murray.

Both AIB and Bank of Ireland were also keen to stress that they were open for business. "We have a dedicated machinery fund of €60m," said AIB's Robin Bradley. "And we can go back for more if we use this up before September.

"But we're having a big job convincing people we are actually open for business."

Bank of Ireland is partnering John Deere's new finance offer in a bid to bolster their agri-finance activity. AGCO have a zero per cent offer on all new Massey Fergusons, Fendts and Valtras, while JCB ECI are offering rates of 3.8pc.

Most finance deals appear to be somewhere between 6-8pc, although farmers reported being asked for up to 10pc for certain items.

Also Read

Some dealers, however, reported that farmers were experiencing difficulty securing finance for second-hand machinery over five years old.

Roger Murphy of AGCO finance said that many farmers were overly pessimistic about their chances for finance.

"We're getting a lot of guys who are convinced that they've no chance of getting finance. But farmers that have had trouble or even been refused overdrafts are often still able to secure finance for machinery."

Indo Farming