Online workshop: How to fund your farming future
Jan 12
Event Dates
Jan 12
Event Location
Webinar

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Thank you for joining our webinar, which we were pleased to run in conjunction with the National Federation of Young Farmers Clubs (NFYFC). 

 

we hope you found it interesting and useful.

 

POST-EVENT SURVEY

We would be grateful for any feedback you’d be happy to share with us, as well as any ideas for future topics.

COMPLETE THE SURVEY >>  
 

SLIDES & WEBINAR RECORDING

If you weren’t able to join us, or would like to watch it back, you can access slides and the webinar recording using the links below.

VIEW THE SLIDES >>

VIEW THE RECORDING >>

Q&A
Unfortunately, we do not have this information available but there has been a steady growth in agricultural lending year on year, as shown in the graph below.
 
 

We would only have this information available from an AMC’s perspective and not industry-wide which may not be a true reflection. The main reason for applications to be rejected is serviceability of the loan.

Most banks can offer unsecured loans, but the interest rates will be higher than secured loans to take account of the risk involved. Unfortunately, the AMC do not offer unsecured loans.

It certainly is a bigger consideration now when looking at new applications as we can see how the reductions will affect the bottom line of the accounts. AMC do not have annual meetings with their customers unlike other lenders except when issues start to arise. Farmers are innovative and we hope are making plans to mitigate against any impacts.

It would depend on what your current overdraft interest rate is and what your future plans are. It is important to protect cash flow as the phrase “asset rich, cash poor” often is referred to by farmers. Some businesses would have a core overdraft, being the level that the overdraft does not fall below. Depending on rates, it may be more economic to move this core element onto a loan and keep the overdraft to buy cattle. However, you wouldn’t want the bank to subsequently reduce your overdraft below a point that would facilitate the expansion in cattle numbers. Overdrafts tend to be more expensive than loans, but they serve a purpose if used in the right way.

AMC had a record year in 2020 but whether it is Covid-related, we are unsure. Parts of the agricultural industry were relatively unaffected by the pandemic whereas other parts were significantly impacted. Bounce back loans offered by the government through banks have generally distorted loan statistics.

GET IN TOUCH

If you’d like more information on the Agricultural Mortgage Corporation (AMC), please feel free to get in touch either with one of the speakers, or your local Carter Jonas AMC agent. You can find all their contact details on our website.

Dan Taylor
dan.taylor@carterjonas.co.uk
07720 537187

Marie Handel
marie.handel@carterjonas.co.uk
07899 060504

Ross Kent
ross.kent@carterjonas.co.uk
07713 101652

Nicola Palfrey
nicola.palfrey@carterjonas.co.uk
07717 727281