NFU calls on banks for continued support for farmers

The meeting, which took place at Stoneleigh HQ, was chaired by NFU President Meurig Raymond and hosted bankers from HSBC, Barclays, Lloyds, RBS-NatWest, Clydesdale.

NFU economist Anand Dossa and research manager David Clifford gave their insight into the current state of the UK agriculture based on member surveys and market intelligence.

Commenting on the meeting, Mr Raymond said: “The British farming industry is currently dealing with issues such as rising costs and against a backdrop of both political and economic uncertainty as we head into the new year.

“With all the major banks around the table, today was an excellent opportunity to help create and maintain that high level of understanding of the farming industry. This understanding, and the financial support, will be needed by farmers as they face the challenges ahead.”

Mr Raymond posed the question to the representatives: 'Why do you think it's important for your bank to support UK agriculture, and how will you do this in the future?'

In response, Oliver McEntyre, national agricultural strategy director at Barclays, said: "UK agriculture is a growth sector at Barclays, it forms the backbone of Barclays UK and we have supported the sector since 1744. Farming is the cornerstone of the rural economy and infrastructure, providing food security, jobs, a rural economic foundation and a farmed environment which benefits bio-diversity and tourism.

"British farmers are as resilient as they are versatile, which means the industry is in a good position to utilise agri-tech innovations to improve efficiency in core production, while providing a great base for diversification into commercial or tourism property, adding value to core products, rural attractions and energy. This gives UK agriculture a strong outlook and one Barclays will continue to support."

Ian Burrow, head of agriculture and renewable energy at NatWest and the Royal Bank of Scotland said: “Farming is the lifeblood of rural communities and vital to the UK, and global, economy. For generations, NatWest has been proud to support agricultural businesses and we are committed to continuing that support.

"Last year we lent over £3bn to the sector and support more farming businesses than any other bank. But our support goes beyond lending and traditional banking services. With a network of over 150 dedicated agriculture specialists across the UK, our commitment is to understand today’s challenges and foresee tomorrow’s and help business become safe and secure for the future.”

Neil Wilson, head of agriculture at HSBC said: “Agriculture is one of the foundation industries in a strong and robust economy with food production playing a key role in the growth and wealth of a nation.

"Farming is a key part of a food sector that research shows contributes around £112bn to the UK economy. HSBC is committed to playing an active part in supporting and growing the farming and food sector now and into the future.

"We shall do this by continuing to invest in the growth of our specialist agriculture team and relationship managers to ensure that they are well equipped to understand and support UK farming businesses as the industry continues to evolve. Collaborating with the farming and food sectors has been a long term strategy within HSBC and is underlined by the continuation of the Head of Agriculture within the bank alongside the addition of a Head of Agrifood."

Andrew Naylor, head of agriculture at Lloyds Bank said: “We are committed to supporting the UK farming sector and to providing the finance necessary to fund the growth, diversification and investment plans of our customers. We will continue to do this through our Lloyds Agriculture business, as well as AMC.

"As long-standing lenders to the sector, we understand the nuances of farming life, and we have a track record of responding swiftly to help farmers address the many challenges and risks that they face, as well as to grasp emerging opportunities.

"We have provided funding to help farmers cope with severe weather conditions, such as Storm Desmond and to manage anticipated delays to subsidies from the EU Basic Payments Scheme; and we have recently launched specialist supply chain finance products to help farmers who want to enter the growing venison market or boost egg production."

A spokesperson from Clydesdale and Yorkshire Banks said: "We have a long and proud history of supporting UK farmers and agriculture & horticulture is a key sector for our business.

"We are seeing more of our customers wanting to diversify, seeking to create new income streams and seizing unique opportunities for growth, such as research and development, renewables and technology. This often requires significant investment and we will play our part in supporting the ambitions of the rural economy.

"We are committed to working with SMEs and our approach to our Agribusinesses is very much delivered by a thorough understanding of each business, giving a tailored service that meets their individual needs.”