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19/07/2009 13:31:02
Farmgate prices and input costs are the main concerns to Welsh farmers during the current recession
Farmgate prices and input costs are the current issues that Welsh farmers feel could cause the most significant risk to their businesses during the credit crunch, according to a banking survey carried out by NFU Cymru.
Sixty percent of those farmers asked said that farmgate prices are currently the most significant a risk to their business and 44% stated that input costs are a high or critical risk. In contrast however, bearing in mind the current state of the banks, 55% said credit access was no or minimal risk.
Dai Davies, NFU Cymru President, speaking at the Royal Welsh Show, said, "NFU Cymru decided to do a survey of how the banks are treating their farming customers in advance of the Royal Welsh Show as this week is when we meet with all the major banks and discuss the issues concerning Welsh farmers. I’m pleased that over half of those asked say that access to credit is of no or minimal risk to their business. On the whole, farmers have been able to access additional lines of credit where necessary. This has been important, especially for dairy farmers in Wales affected by the demise of Dairy Farmers of Britain. I welcome the support that many banks have continued to show to the farming industry."
Meanwhile, 67% of those farmers surveyed with overdrafts had endured an increase in interest rates over the past six months with 18% facing an increase of 2% or more on their charges.
Some respondents to the survey raised concerns about how they were informed of the increases. One commented, "The bank’s letter telling us of the increase in charges over the base rate was very impersonal. It was almost like a general mailshot and we could have been advised in a better and more customer friendly way."
When hearing about this Dai Davies said, "Whilst we are generally heartened with the results of the survey, we were disappointed to hear that some farmers have been stung by increased charges on their overdrafts as this is a vital component of a farm business. This will be something I shall bring up with the agriculture managers during our discussions in the show, particularly if farming customers feel as though they are receiving this stinging news in a very impersonal way."
Sixty percent of those farmers asked said that farmgate prices are currently the most significant a risk to their business and 44% stated that input costs are a high or critical risk. In contrast however, bearing in mind the current state of the banks, 55% said credit access was no or minimal risk.
Dai Davies, NFU Cymru President, speaking at the Royal Welsh Show, said, "NFU Cymru decided to do a survey of how the banks are treating their farming customers in advance of the Royal Welsh Show as this week is when we meet with all the major banks and discuss the issues concerning Welsh farmers. I’m pleased that over half of those asked say that access to credit is of no or minimal risk to their business. On the whole, farmers have been able to access additional lines of credit where necessary. This has been important, especially for dairy farmers in Wales affected by the demise of Dairy Farmers of Britain. I welcome the support that many banks have continued to show to the farming industry."
Meanwhile, 67% of those farmers surveyed with overdrafts had endured an increase in interest rates over the past six months with 18% facing an increase of 2% or more on their charges.
Some respondents to the survey raised concerns about how they were informed of the increases. One commented, "The bank’s letter telling us of the increase in charges over the base rate was very impersonal. It was almost like a general mailshot and we could have been advised in a better and more customer friendly way."
When hearing about this Dai Davies said, "Whilst we are generally heartened with the results of the survey, we were disappointed to hear that some farmers have been stung by increased charges on their overdrafts as this is a vital component of a farm business. This will be something I shall bring up with the agriculture managers during our discussions in the show, particularly if farming customers feel as though they are receiving this stinging news in a very impersonal way."
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