Local Farmers Must Act Quickly To Receive Discounted Farm Lending Rates Says AMC
Farmers considering making an investment in their businesses are being urged to tap into discounted loan rates from the Agricultural Mortgage Corporation (AMC), but should act quickly to ensure they secure a loan before the EIB funds expire.
AMC has negotiated access to a £250 million fund provided by the European Investment Bank (EIB) aimed at stimulating investment and job creation in small and medium sized businesses, including farming.
“Our access to this fund allows us to effectively subsidise loans for a wide range of farm improvement and diversification projects, including, building works and livestock housing, machinery and equipment purchases, farm shops, milking parlours and farm energy schemes. The total fund pot is limited and we have already seen a good deal of interest. Farmers with a particular project in mind are urged you to contact their local AMC agent at George F White,” said Jonathan Allright, Head of AMC.
Andrew Entwistle of George F White says, “This scheme provides an opportunity for farmers, who are considering expanding or investing in improving farm efficiency, to access favourable loan rates at a time when interest rates are already historically low.”
Those borrowers eligible for the EIB scheme will receive a discount of 0.8% off the normal loan margin. The minimum amount borrowers can apply for in the scheme is £25,000 with the maximum set at £11 million – equivalent to €12.5 million. The discount is available on loans of up to 10 years for projects that have a definite start and end date.
“A wide range of projects fall within the scope of the scheme so it is worth considering how it could help strengthen your farm business for the long term,” says Andrew.
There are however some eligibility criteria that must be attained and each case will need to be discussed with AMC on a proposal by proposal basis,” Andrew says.
“With the demands to produce food for a growing population increasing, this funding offers a real financial boost at an important time for many farm businesses.”