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The farming industry is bracing itself for a big change with Brexit looming. Our contacts in the banks are saying ‘business as usual’ but there are indicators of instability. What can farms and rural businesses do to prepare for a period of uncertainty?
Are interest rates on the move? We think not which is good news for farming businesses. While interest rates are low, it’s a good time to invest too. But there will come a time when you might want to fix your interest rates - but when? Each business should draw their own conclusion based on their circumstances and approach to risk.
Many banks and rural lenders remain supportive of the farming industry. However, 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.
It’s getting rare to find the main banks offering unsecured lending facilities. Tenant farmers, start-ups and those that have reached their secured credit limit find it hard to find finance. But more lenders are coming in to the market and could help you.
Our main focus is finding our clients the most appropriate finance through the high street banks, farming lenders and private banks. But the number of alternative lenders are growing and here we explain their benefits.
It went down to the wire but the people of the United Kingdom voted to leave the European Union (EU). What does it mean for banking, interest rates and farming?
Farm incomes are being hit and profits squeezed by the drop in farm gate prices. It’s leading to cash-flow problems for many farmers. While quick, short-term alternatives for finance sometimes look the easiest option to help struggling farmers out of cash shortages, we caution that these are often expensive and can be damaging. The farm profits squeeze is being reflected in the level of borrowing by farm business and being seen in farm sales reports.
Have the farming industry questions on how an EU exit would affect farmers been answered? We look at the outstanding points and what happens next.
Three years of downward pressure on commodity prices is paying its toll on many producers. A regular review of farm finances and their costs is always important and even more so in times when cashflow is under pressure.
The date is set. Prime Minister David Cameron is to hold a referendum on the future of Britain’s EU membership on 23 June 2016. The influence of the EU on British farming is enormous. Opinions whether Britain should stay in or get out of the EU are divided amongst farmers and even the Government’s farming ministers, with Defra Secretary Liz Truss declaring she’s ‘in’, and Junior Minister George Eustice joining the ‘out’ camp.
It takes time to find the right lender and then to negotiate a suitable deal. You can go direct to banks, but the support of an expert can lead to better outcomes. What should you look for when choosing mortgage advice for your farm or rural business?
For farming and rural businesses experiencing a slump in commodity prices, continuing low interest rates and a low cost of borrowing will bring considerable relief. But when will rates rise and what should farm and rural business do to prepare?
