As every year, Entraid, with the support of the AgroEcoTech service of fncuma, provides an update on cumas’ banking obligations, which can be read in our September monthly issue. A review of the accounts between 2011 and 2021 gives a precise picture of the loans granted to the cuma according to the banks, regions and materials.
“Stability” is the word that characterizes cumas’ situation in terms of their banking obligations. Because if the volume of bank loans of more than 3 years attributed to cuma decreases very little in 2021 with 236 M€ against 257 in 2020, the scope of activity of the main banks involved in this market has hardly changed. Nor the terms of the loans, with interest rates in 2021 that were still very slightly trimmed compared to the previous year. Nor the average amount of accumulated loans in 2021, which amounts to €32,000. This is €1,000 less than in 2020, when it was €33,000. But over 10 years, you should notice that it has developed by 42%. The constant increase in the price of materials is no stranger to this trend.
Crédit Agricole, Crédit Mutuel and Banques Populaires at the forefront of bank loans for Cuma
On the podium, the order of arrival of the banks does not vary. Nor in the number of loans. Not even in the borrowed amount. The first three banks alone take 90.5% of the total amount borrowed. And 92.5% of the number of loans. Crédit Agricole, which is very present in agriculture, also clearly dominates the Cuma market. Its market share is eroding only slightly. Crédit Mutuel is in second place. And the Banque Populaire group is in third place on the top podium. All the other banks that the cuma works with each represent less than 1% of the amounts borrowed.
An average rate of 0.85%
That interest rates for bank loans granted to cuma follow a trajectory of quasi-stagnation. They have never been so low in 2021. Last year, one cuma borrowed on average at 0.85%. This is 0.10% less than in 2020 and 0.16% less than in 2019. Remember, in 2012 the average rates were still 3.3%.
However, these figures correspond to national observations, all banks combined and all regions combined. But on closer inspection, the conditions for loans in the regions are markedly different within the same bank. Each regional reciprocity has some leeway in this area. That loan conditions also experience some differences depending on the type of equipment.
The financing of tractors is generally subject to slightly more favorable loans: 0.4% less than for sowing, processing or handling transport equipment. Finally, the last noteworthy point, the duration of the loans. Those entered into over 5 years represent 25% of the loans. Above all, it is the 7-year loans that dominate. They represent 53% of borrowing.
The picture of cuma loans drawn from the 2022 figures will be different. After a long period of calm, interest rates are now rising. A phenomenon that should give a little more fuel to the overall increase in material costs.
Finally, to also read about loans:
Better expect loans with Cap’cuma.
Alternatives to bank loans.
Investors to finance working capital.