Highland 2010: Pledge for £100m in bank lending

Bank of Scotland has pegged an extra £100m in new lending to Scottish farmers this year, said the Bank’s head of agriculture, Sandy Hay, at the Royal Highland Show.

“The funding is being earmarked for Scottish farm businesses looking to consolidate or expand,” said Mr Hay.

“Capital and finance is required to fund farm investment, including machinery purchases and building improvements, and more land and farms will be coming on the market in the next few weeks which could prompt expansion plans, particularly where land is close to existing holdings.”

Mr Hay said the bank’s “clear commitment” to farming was an indicator of long-term confidence in the industry and the potential for efficient businesses to achieve good returns.

“We are very much open to discussion with farmers in Scotland to see how we can assist with capital investment plans,” said Mr Hay.

“Whether it is farm expansion, updating fixtures and fittings or funding new machinery purchases, we welcome the opportunity to support Scottish farmers in making their business plans come together.”

* See more stories from the 2010 Royal Highland Show.