HSBC UK has launched a £1.2 billion fund for agriculture businesses as part of its commitment to help British companies innovate and grow as the country looks to rebound from the Covid-19 health crisis.
The fund is part of a broader £15 billion lending fund to support small and medium-sized enterprises (SMEs) across the UK.
HSBC said that 2020 was a challenging year for businesses and the agriculture sector was not immune, with farmers and growers stepping up to the immediate challenges and adapting to changes to supply chains and consumer purchasing habits.
In 2021, changes following the UK leaving Europe and the demise of area payments, will also change the face of farming.
The impact farming has on the environment will become a critical metric to consider and will increasingly have practical implications for businesses across the UK, according to HSBC.
The need for action to reduce climate change will intensify quickly and the industry will play a leading role in this.
Increased levels of investment
HSBC expects that there will be an increased level of investment in farming enterprises during 2021 in anticipation of these changes to the industry.
Martin Hanson, head of agriculture at HSBC UK, said:
One thing Covid-19 has shown, is the importance of food security for the UK. It is vital that farming thrives and to do that the industry will need innovation, technical advancements and thought and change leadership, as well as, access to finance to allow investment and change to happen.
“Our £1.2 billion fund will help businesses to develop, grow and drive investment.
“We know our customers are innovating and adapting at pace and British businesses tell us that through these uncertain times they need their bank to be flexible, provide funding when they need it most and to support future growth opportunities and that is exactly what this year’s fund intends to achieve,” he concluded.
