Farm borrowings down 220m

By FWi staff

FARM borrowings fell 220 million in the last quarter of the 1999/2000 financial year to total 7761m, according to figures released by the Bank of England last week.

“This is in line with our expectations and reflects the benefits of harvest proceeds and IACS receipts,” says Steve Ellwood, HSBCs head of agriculture.

The year-on-year change shows borrowings have grown by 3.5%.

“This is a better indication of the underlying position and shows farmers have done a fantastic job at controlling cash flow under severe income pressure,” adds Mr Ellwood.

Money held on deposit rose by 100m, which reflects the position of many strong, well managed and efficient operations, he says.