JHM Crops Ltd.

JHM Crops and Bank of Ireland's New Funding Structure for Miscanthus Growers
Miscanthus Growers get income from Year 1

JHM Crops Ltd recently reached agreement with Bank of Ireland on a new funding structure for Miscanthus growers, that will add further impetus to the ever-expanding biomass industry in Ireland. Prospective growers can avail of the new funding structure (subject to lending terms and conditions) as part of the Bank's new Green Fund. This agreement between JHM and Bank of Ireland is very timely, with the 2011 planting season just ahead of us.

Joe Hogan, Managing Director of JHM Crops, highlights the significance of the new funding package: "We have been involved in the Miscanthus business in Ireland from the very beginning, campaigning for establishment grants and developing secure markets, and this funding package with Bank of Ireland gives farmers the guarantee that they will receive an income from year 1. This will result in the rapid expansion of the acreage of Miscanthus planted that is required to meet market demand."

The funding structure has been in development for some time and is the result of a concerted effort by JHM to make the transition into growing Miscanthus as easy and straight-forward as possible for farmers. Though many of the early growers of Miscanthus who saw enough potential in the crop to plant without the Dept. of Agriculture Bioenergy Establishment Grant are already seeing real returns it is clear that current economic circumstances mean that farmers need more options. Now the farmer can avail of the Bioenergy Establishment Grant and Bank of Ireland funding to cover establishment costs and get money coming in without the wait.

Bank of Ireland is keen to support the agri sector in Ireland and the biomass sector where the potential for Irish farmers to become energy producers is clearly evident. Michael Lauhoff, Head of Small Business and Agriculture adds, "JHM are long term customers of Bank of Ireland and we have witnessed their operation first-hand. We are pleased to agree this funding structure for Miscanthus growers, which will provide a return to the land owner from year 1"

Miscanthus is Ireland's most popular biomass crop and remains in the ground for upwards of 25 years. Before this funding package was agreed farmers had to wait until the first harvest which comes in year two/ three to receive their first income. The funding structure agreed with Bank of Ireland means farmers no longer have the two or three year wait relieving any pressure from initial investment. JHM Crops were the first company to plant Miscanthus commercially in Ireland and are now the market leaders in the sector. The markets for Miscanthus at present are such that JHM is looking to significantly increase its acreage to meet demand for the energy crop as fuel, and see the funding package with Bank of Ireland as key to ramp up supply. JHM Crops are keen for those interested in growing to contact their office immediately to find out more.

Contact us here at JHM on 061 395336 for more information on how the New Funding Stricture benefits all new growers.