Single farm payment delays and hijacks

Allied Weighing

Member
Mixed Farmer
Location
Llangernyw
Ive been speaking to quite a few farmers over the last month or two and have had some alarming stories, namely banks reducing or removing overdrafts once SF payments have been received , therefore cutting the lifeblood of cash-flow off when its needed most. I'm disgusted to hear this is happening to farmers ,,, but i shouldn't be surprised when i think about it a similar thing happened to us 4 years ago, mid recession, our bank changed all there criteria for renewing overdrafts and what happened to us was on renewal they changed a large percentage of our o/d into a loan, we had no choice in the matter even though the o/d was working for us and we had never once in 10 years exceeded it. The only effect on us was of course to hamper cash flow even further , just wondered if this is a minority situation or a larger problem, either way banks are still not working for small business/ farms ... feel free to rant!!
 

bobajob

Member
Location
Sw Scotland
That sounds bad, not a good for those farmers. I can only speak from personal experience but we have no problem with our bank (rbs). The ag manager knows the industry well. No pulling the wool over his eyes though, he would know if you were trying to bluff him
 

SRRC

Member
Location
West Somerset
Finding quite the opposite here! Natwest is pushing money at us "please borrow this".
Ag manager has just pointed out that via the Funding for Lending scheme they are offering a 10 year fix at 3.76%.
 

Brisel

Member
Arable Farmer
Location
Midlands
Overdrafts are repayable on demand. Read the small print.

Seems daft to do this when the loan to value ratio of a farm is so good vs a normal business where gearing is usually much much higher unless the site is freehold. Feel free to change banks.
 

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Red Tractor drops launch of green farming scheme amid anger from farmers

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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