Milk and lamb farm gate prices have fallen below the cost of production and many British farmers, across all sectors, are struggling to cope with falling wholesale prices for their produce.
“These are very critical times for farmers,” said Andrew Naylor, head of agriculture at Lloyds. “Farmers have been letting us know for some months."
National Farmers Union President Meurig Raymond said: "We welcome this announcement from Lloyds Bank that it recognises the potential delays farmers may face in receiving their farm support payments.
"The NFU has worked closely with the banking industry to make them aware of the risks, but at the same time we are also committed to working with the RPA."