Lloyds Bank has announced support for farmers impacted by flooding, offering temporary and fee-free increases to overdrafts to help with working capital.
With farmers expected to feel the brunt of flooding later on in the year, they can apply for this facility up until the end of August.
It follows storms Ciara and Dennis, leaving many farm businesses facing significant challenges as a result of the prolonged wet weather.
"The cashflow impact will be particularly felt from harvest this year, and pre harvest next year," said Andrew Naylor, head of agriculture at Lloyds Bank.
“Finance may not be at the front of farmers’ minds when they’re still dealing with the impact of the weather, but now is the time to consider the impact of the weather on immediate and future cashflow and how best this can be managed."
Support by the bank includes help with meeting the immediate costs of damage to crops, repairs to buildings and land or floor repairs, as well as being on hand to support them if 2020’s yields are lower than forecast.
The support will offer, on a case-by-case basis, temporary increases to overdrafts, which will be arrangement fee-free, to help customers with cash-flow.
Mr Nayor said: “We are committed to being by the side of our agricultural customers affected by severe weather and that’s why we have committed to supporting farmers to manage their finances.
“The effects of the weather are generally short-lived in relation to the lifespan of a farm business, so planning now to make sure working capital remains available, whilst being realistic about costs and expenditure through the coming months, will go some way to help farms to function better over the longer term.”
The support can be applied for until the end of August 2020, in recognition that challenges to cashflow for some farmers may not be felt immediately.
It comes as farming charity RABI releases money from its crisis fund to provide emergency grants to farmers and their families affected by flooding.
