Farmers applaud interest rate cut
9 February 2001
Farmers applaud interest rate cut
By FWi staff
FARMERS have welcomed the decision by the Bank of England to shave 0.25% off the UK interest rate.
Professor Allan Buckwell, director of policy at the Country Land and Business Association (CLA) said the cut – the first since February 2000 – was a double boost for farmers.
“It will reduce the cost of farming and may also weaken the strength of Sterling against the Euro – reducing the main problem British agriculture has been confronting,” he said.
Ben Gill, National Farmers Union president, said he too was hopeful the move would help re-balance the Pound against the Euro.
“The Pound/Euro exchange rate has an enormous and direct impact on UK farmers and their ability to compete and survive.”
The NFU has estimated the cut will knock some 25 million of the cost of borrowing for producers.