Livestock farmers thinking of developing their businesses could access discounted borrowing rates from the Agricultural Mortgage Corporation (AMC) if they act quickly.
AMC has negotiated access to a multi million pound EIB investment fund which can effectively subsidise eligible loans with a significant discount of 0.65 % off their normal loan margin.
Local AMC agent, Tony Rimmer, of Rostons Ltd says that this is an important source of funding for projects such as slurry storage updating or buying new parlours, machinery and equipment purchase, buildings improvements and the like.
“We have already seen a good level of interest from those livestock farmers who see this as an opportunity to make efficiency and profitability improvements very cost effectively,” says Tony Rimmer. “I would urge those farmers who want to make the most of the offer to get in touch with us as soon as possible to discuss their individual requirements. Funds available at the discounted rate are in limited supply so we suggest anyone interested should act sooner rather than later.”
Ideal opportunity to invest
The EIB scheme comes at an important time for livestock farming and dairy producers as they consider investments that ensure they are well positioned to make the most of the long-term drivers such as the need to feed an ever growing population.
“The increasing demand for food to feed an expanding global population is prompting some farmers to expand facilities or invest in more efficient systems,” says Tony Rimmer. “This source of funding has come at a time when interest rates are already at historically low levels. As such now is a good time for farmers to invest in their businesses to mitigate future price volatility and the likely reduction in SFP income and to ensure they are less exposed to higher input costs.”
“From a installing a new parlour to developing energy management infrastructure , there are numerous investments that this money can be used for. There are however some eligibility criteria that must be attained and each case will need to be discussed with AMC on a proposal by proposal basis,” Tony Rimmersays.
“I would suggest that those farmers who are interested act sooner rather than later in order to avoid missing out on this significant discount opportunity.”
Example lending purposes
The following are examples of loan purposes that will qualify for the discounted rates. The range of loan purposes is wider than the examples shown so applicants need to check with the AMC on a proposal by proposal basis.
Buildings: general purpose shed; hay/straw storage; livestock housing; grain store; potato store; chicken sheds; milking parlours.
- Equipment: grain drying; robotic milking equipment; milking parlour equipment; chicken shed equipment; vegetable processing lines; milk processing equipment.
- Vehicles: tractors; combines; potato harvesters; lorries.
- Renewables: photovoltaic panels; wind turbines; water turbines; anaerobic digesters.
- Storage: reservoirs; slurry store.
- General: opening or expansion of a farm shop; orchard establishment; dairy cows; purchase of wholesale business (max €1 million); farm field draining; research and development.
For further information contact the Rostons office on 01829 773000