Oxbury Bank aims to lend £1bn to agriculture by 2024

A £1bn lending target by 2024 has been set by Oxbury Bank for the agricultural sector and food supply chain.

The specialist agricultural bank, which was established in February 2021, is expecting to break even by the final quarter of this year.

Since its inception, the bank has offered lending of more than £150m in completed loan facilities to the British farming sector.

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Oxbury has committed to a further £250m worth of lending offers, which are in the process of completion.

About one-third of the value of lending to date is related to working capital facilities, split between Oxbury Farm Credit for input purchases and Oxbury Flexi Credit, which provides funding for dairy producers to draw into their existing current accounts.

Lending connected to land purchase accounts for about another one-third of the total value, for both existing lending and future committed lending.

James Farrar, chief executive officer and co-founder at Oxbury Bank, believes support from the rural economy has allowed the company to aim to break even earlier than previously expected.

“Our performance since launch has really highlighted the depth of demand for our practical, engaged customer approach to backing the crucial farming and food production sector, as they face up to the challenges of climate change and delivering security of food supply while building a modern, sustainable industry,” Mr Farrar said.