The UK’s largest lenders to the agricultural sector joins NatWest in offering a range of tailored measures to farmers and growers amid challenging conditions
Lloyds has announced that it is increasing financial support for its agricultural customers as prolonged dry weather has put growing pressure on UK farmers and growers.
Eligible customers may be offered a range of measures, including working capital solutions, overdraft support, loan repayment holidays, interest rate reductions, temporary lending facilities or wider lending arrangements, the bank said.
The support comes as more than two-thirds of England is in drought. It also follows NatWest’s announcement of a range of tailored financial measures for its agricultural customers.
Extreme weather has affected a range of crops in the UK, with vining pea growers reporting yield declines of almost a third, while brassica yields have almost halved in some areas.
Lloyd said its specialist agriculture managers were working closely with farming businesses to understand local conditions and consider tailored support to help manage short-term financial needs.
The bank acknowledged that challenges brought by dry weather, including reduced grass growth, higher feed requirements and pressure on yields, harvest patterns and water use, can translate into cashflow and working capital pressures.
Lee Reeves, UK head of agriculture at Lloyds, said: “Prolonged dry weather is creating real challenges for many farming businesses, from pressure on yields and feed availability to water use and cashflow.
“As the UK’s largest lenders to the agricultural sector, our specialist managers are speaking with customers across the UK to help provide tailored support, including options to manage working capital, overdraft needs, or wider lending arrangements.”
He added: “British agriculture is vital to food security and rural communities, and we remain committed to supporting farmers with the finance and expertise they need to grow and remain resilient.”
Alongside its immediate financial support, Lloyds has continued to offer other initiatives to farmers and growers.
Its Clean Growth Financing Initiative offers discounted lending for eligible green investments, such as energy efficiency, renewables, water management and waste management.
The bank’s Agriculture Transition Finance loan is also designed to support UK farmers moving towards regenerative farming practices.
