European Funding Could Provide Timely Boost For The Regions Farmers
Farmers and food producers thinking of investing in their businesses could access discounted borrowing rates from the Agricultural Mortgage Corporation (AMC plc).
AMC has negotiated access to a £multi million European Investment Bank (EIB) fund aimed at stimulating investment and job creation in small and medium sized businesses, including those in farming. This means that loans for eligible projects can be discounted by 0.8% below normal rates for 10 years.
AMC agent Kevin Guy, a Partner at George F White, says this is an exciting development and means that loans for a wide range of farm and diversification projects such as building works, livestock housing and crop storage, farm shops and farm energy schemes can be heavily discounted.
“At a time when interest rates are historically low this could represent a real opportunity to cost-effectively invest in the future of the farm.” Kevin says.
“The previous scheme met with strong farmer demand in the area with many using it as an opportunity to develop projects that improve efficiency, productivity or help to manage costs.”
“For example farm energy schemes such as wind, solar or hydro, which are increasingly being seen as a way of mitigating rising energy prices, are likely to be eligible for the discount.”
“With demand for food underpinning optimism across many sectors and challenges around managing production costs, this scheme offers a real financial boost at an important time for many farm businesses. I would urge anyone who is about to fund a farm improvement programme to find out how the EIB scheme could help reduce costs,” concludes Kevin.
For more information and to find out whether your project is eligible contact your nearest George F White contact:
Kevin Guy – Yorkshire
Andrew Entwistle – County Durham
Ben Johnson – Northumberland & Borders