NFU economist Anand Dossa said: “Farming is an industry with increasing borrowing levels, currently at a record high of £18.6 billion and so this increase in interest rates will have an impact on the sector.
“The rate rise also comes at a time when farm businesses have already witnessed rising input costs totalling 7% over the past year. This demonstrates the volatility farmers are all too familiar with.
“Given the pound is likely to strengthen as a result of the rate rise, this will have an additional impact on farming businesses with farmers facing increased costs at a time when the trade environment is already uncertain.
“We have been urging Government to look at its policies to ensure we have a productive home-grown food and farming sector. It is vital the new domestic agricultural policy needed post-Brexit includes measures to manage volatility to ensure more business certainty for farmers and support a competitive, profitable and progressive farming sector.
“The NFU is encouraging its members to talk with their banks or lenders to find out about their options.”
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