Newspaper article The Journal (Newcastle, England)

Lending to Farming Businesses Increases by over Pounds 1bn

Newspaper article The Journal (Newcastle, England)

Lending to Farming Businesses Increases by over Pounds 1bn

Article excerpt

Figures released by the Bank of England this week show that lending to farming businesses in the UK has increased by more than pounds 1 billion during 2005.

At the end of December 2005 the industry borrowed a record pounds 9,363m, compared to pounds 8,288m in December 2004. The rise in lending of pounds 1,075m represents an increase of 12.9% during the year.

Euryn Jones, agricultural policy director at Barclays, said: "These figures should not come as a surprise to the industry. Lending to farmers was at a record level at the end of the third quarter of 2005 and the delay in receiving payments under the new Single Payment Scheme has necessitated further increases in bank borrowing for many farmers.

"At Barclays we have seen an increase in farm lending during the year.

"The announcement that the Rural Payments Agency is to start making full payments to farmers in England before the end of the month is certainly welcome. It will relieve pressure on farm overdrafts and will enable farmers to pay outstanding bills to their suppliers, many of whom have also seen pressure on their bank accounts, as farmers try to minimise their borrowing costs. …

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