Lending appetite from the UK’s biggest banks hasn’t changed despite Covid-19 fears, with the financial institutions now also helping to finance the transition to net zero, the National Farmers’ Union (NFU) Banking Forum heard.
December 2020’s forum, held virtually due to Covid-19, was chaired by NFU Deputy President Stuart Roberts and attended by Lloyds, Clydesdale and Yorkshire, RBS/NatWest, Barclays and HSBC.
For the first time, Oxbury Bank PLC also joined the group. Current issues affecting farming, including the impact of Basic Payment Scheme (BPS) reductions, Brexit and green finance were discussed, with those in attendance outlining their continued support for the sector.
Many factors have been driving the NFU towards green finance, including our and the government’s net zero pledges and the 2021 United Nations Climate Change Conference, which will be held in Glasgow.
With the banks having their own net zero targets, they understand the importance of working collaboratively with the agriculture industry to reach the collective goal of net zero.
This means that banks are now actively encouraging productivity and cost reduction, with a continued focus on climate change and green finance.
Forum delegates acknowledged the pressure a lot of farmers are under, and admitted that they shouldn’t ignore the ground factors affecting farming, such as rural crime and extreme weather events.
‘A very positive feeling’
Commenting after the meeting, NFU Deputy President Stuart Roberts said:
“The latest Banking Forum, which meets twice a year, had a very positive feeling; it’s very encouraging to see the banks’ continued support for the sector, despite the current issues affecting the world economy.
It was great to see that despite the lack of detail on future agricultural schemes, banks still want to do what they can to ease the concerns of farmers and give them the security they need.
“The banks have suggested that preparation in the face of Brexit is key. Even when there is little-to-no certainty, they are there to actively support NFU members to take advantage of opportunities as they arise.
“The issue of collaboration will be crucial, as will the relationship between farmers and banks, and I look forward to continuing engagement with all banks, both collectively and individually, as we move forward into 2021,” he concluded.
