Farmers concerned about cashflow
Farmers are beginning to alert their bank managers about possible cashflow problems as a result of a poor harvest and rising costs, RBS has said.
Although there had not been a signficiant rise in the number of lending applications or requests for an increase to exsiting limits, many were coming forward to express concern over cashflow and the importance of receiving their single farm payment in December, the bank said.
“2012 has been one of the toughest years for UK farming with reduced yields, additional costs and delayed harvest income,” said Jimmy Mclean, head of agricultural services at NatWest and RBS.
“This is likely to put more pressure on cashflow through the winter and into next year. This will be compounded in December when the majority of farmers will receive a single farm payment which, for most, will be down around 8% on last year.”
Farmers in need of additional borrowing should always approach their bank sooner rather than later, he added.