Young people in farming
8 January 2001
Young people in farming
OTHER businesses outside farming have access to government loan guarantees, backed by the local enterprise companies, when startup business cannot get finance through normal channels because of lack of personal finance or colatteral.
These are administered by the banks and apply to well thought-out new business startups.
This loan guarantee is not available to agriculture.
The only way into farming for young people is to rent or contract farmland; however, banks very rarely give loans for the working capital needed due to the lack of assets even though the venture is profitable.
The government should look at reinstating this loan guarantee to young businessmen looking to start new farm businesses.
Many of the brightest young people are heading to other businesses due to the essentially high capital costs of machinery, land, quota etc, and when they can rent or lease these items there is no finance available.
Lisa Gwynne, Muirhead, Cupar
mayrock@farmersweekly.net