Farmers urged to act quickly

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Farmers thinking of building new storage, buying machinery, or processing equipment could access discounted borrowing from the Agricultural Mortgage Corporation (AMC) if they act quickly.

AMC has negotiated access to an investment fund from the European Investment Bank (EIB) which can subsidise eligible loans with a significant discount of 0.65% off their normal loan margin.

“We experienced a high level of interest from arable farmers who used the last tranche of discounted funding as an opportunity to invest in their farm businesses,” says AMC agent Jim Major from Brown & Co in King’s Lynn.

“I would urge those farmers who want to make the most of this new tranche of funding to get in touch with us as soon as possible to discuss their individual requirements.”

The EIB scheme comes at an ideal time for arable and livestock farmers. “Higher cereal and cattle prices and have given more farmers the confidence to expand facilities or invest in more efficient systems. This source of funding has come at a time when interest rates are already at historically low levels,” added Jim Major.

“Now could be a good time to invest in the business to help mitigate future price volatility, the likely reduction in SFP income, and to ensure it is less exposed to higher input costs.”

The range of investments the discounted funds can be used for is extensive and includes new or extended grain, potato or other stores. Crop drying and handling systems are also eligible along with vegetable processing lines, installation of a reservoir and irrigation infrastructure or to undertake field drainage schemes. The scheme also covers machinery purchases including combine harvesters and tractors.

In addition farmers are encouraged to review their unlikely cash flow requirements for the next year or two and give some serious though to the advantages on offer from AMC by virtue of its Flexible Loan facility, a very useful tool for existing or prospective new borrowers.

For more information contact AMC agent Jim Major at Brown & Co on 01553 770771.