BORROWING by UK agriculture dipped £239 million in the fourth quarter of 2007 to £9.59 billion.
This came after two consecutive rises totalling £707 million in the previous six months – with a £388 million increase in the three months up to September 2007, and a £319 million rise to June.
Countering those rises, deposits were also up £695 million on the previous quarter, at the end of December 2007 the value of deposits held by UK farmers totalled £4.969 billion.
But these figures tell only part of the story according to lenders. Paul Spencer, head of the Agricultural Mortgage Corporation (AMC), said the December reduction was long overdue although agriculture traditionally did see a dip in the last quarter.
Certain external factors needed to be considered not least earlier receipt of Single Farm Payments on some farms, coupled with higher prices in dairying and arable.
"It will be interesting to see what the next quarter brings, as the results from Q1 2008 may provide a much clearer picture of the UK farming industry," he said.