Britain’s divorce from Europe officially began yesterday, Wednesday 29 March. Brexit could see many changes for the farming industry, including changes to farming support and potential labour cost increases as the negotiations develop. But the marketplace and trading arrangements could begin to see changes much sooner.
Many of the High Street banks and rural lenders remain supportive of the farming industry. However, with the pressure of uncertainty and while interest rates are at an historic low, R&BS would encourage farms and rural businesses to plan for change and evaluate their financial options now rather than wait for the outcome of the exit negotiations with the EU.
We mustn’t overlook that Brexit could also provide new opportunities for UK agriculture and farming businesses. With a very strong product, UK farmers should remain optimistic about new and beneficial global trade deals.
Plan ahead to adapt to change and grasp opportunities
Famers and rural businesses should be putting the right plans in place and making any necessary financial changes to allow them to grasp any new opportunities or to face the challenges ahead.
For example, businesses could become more financial stable and/or able to move quickly with investment decisions by:
- rescheduling hard core overdraft debt onto longer term loans;
- changing shorter term loans or liabilities onto longer term loans;
- restructuring existing loans onto different repayment terms; and
- reducing current mortgages to reduce financial exposure.
Whole of the market access ensures more competitive deals
Most farming businesses will only turn to their existing bank or rural lender for support or new borrowing. But other banks or lenders may offer better rates and terms, and alternative financial solutions. With access to a panel of 24 lenders, we can make sure that farmers and rural businesses are getting the most suitable deal, rates and terms from the whole financial marketplace.
Your successful financial outcomes are our top priority. Rural and Business Specialists Ltd have a proven track record in turning farm business challenges into prosperity and financial stability and to putting progressive farms into positions to make the most of new opportunities.