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Surge in lending to farmers

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Lending to agriculture is bucking the national trend following improved conditions in most farming sectors. Lloyds TSB Agriculture’s lending to farmers rose by 14 per cent in 2011 whilst Bank of England figures net lending to agriculture rose by 4.2 per cent last year. By contrast, overall lending to other SMEs fell by 6 per cent.

Gareth Oakley, agriculture director for Lloyds TSB Bank plc said: “Whilst some sectors lacked the confidence to borrow and expand, this is not the case for farming. The agricultural industry is increasing its borrowing as farmers become more confident about the longer-term future of the industry and are investing to provide a sustainable, profitable future for their businesses.

“Together with manufacturing and telecoms, we see agriculture as one of the top three sectors to grow output in 2012. We will continue to support farm businesses with specialist, locally based teams of agricultural managers who can offer farm-focused business solutions,” said Mr Oakley. "Lloyds TSB Agriculture has seen over 800 farmers moving their banking to us, building on the 900 customers who moved in the previous year.“

Lloyds Banking Group increased its net lending to SMEs by 3 per cent in 2011 and under its ‘Merlin’ commitments it has pledged gross lending of at least £12 billion to SMEs in 2012.

Last Updated ( Thursday, 03 May 2012 17:07 )