The Dairy Show provides opportunity to review strategic investment

A properly funded investment programme focused on areas of the dairy business that improve technical performance has the potential to pay immediate dividends, according to The Agricultural Mortgage Corporation (AMC).

"We calculate that the current cost of borrowing £250,000 over 20 years is the equivalent of just 1.5ppl for a farmer with 150 cows yielding 7,800 litres a cow a year," said Jonothan Day, new AMC Regional Agricultural Manager for the South West, speaking ahead of The Dairy Show.

"Used strategically, that level of capital can give a significant return on investment at a time of rising milk prices and producer confidence."

AMC has published a 12-page ’Investing in Your Dairy Business’ guide, which will be available free to visitors to the AMC’s stand at The Dairy Show at the Royal Bath & West Showground on 5th October. It provides information, guidance and examples that demonstrate how taking a planned and strategic approach to dairy investment can transform a business.

The publication includes contributions from leading dairy consultants John Allen of Kite Consulting, Duncan Forbes of Kingshay and Paul Henman of Promar.

"We are seeing an increase in the number of enquiries from dairy farmers who are looking to invest in their businesses," said Mr Day. "We are encouraged by a steady but growing confidence in dairying and are fully committed to providing the finance to help farming businesses develop for the long term."

AMC’s overriding focus at the event will be the provision of the most effective finance for an agricultural business. In particular, AMC will highlight its Flexible Facility, which offers farmers an alternative source of finance from a bank overdraft where the interest rate margin is fixed for a period of up to five years. The continuing availability of discounted interest rates through the AMC’s European Investment Bank scheme will also be featured. This offers a 0.8% discount on loans for a range of qualifying projects and can be used for a wide range of dairy business investments, though is only available for a limited period whilst designated funds last.