A boost for farm businesses looking to diversify and or invest into improving the infrastructure on farms. A large sum has been put forwards to allow farms to diversify the business and in doing so stabilising it with new revenue streams. The bank is expecting an increased level of investment in farming businesses during 2021.
A £1.2 billion lending fund for farming businesses has been launched by HSBC UK as part of its wider small and medium-sized enterprises fund.
The specialist farming sector fund aims to help agriculture businesses grow as the UK looks to rebound from the Covid-19 pandemic.
The bank says it expects there to be an increased level of investment in farming enterprises during 2021 in anticipation of changes to the industry.
These changes include the loss of EU subsidies and the impact of climate change on farmers’ businesses.
HSBC, the first bank to have its own agriculture team, will also provide specialist support with its network of 90 Agriculture Managers.
The farming fund is part of the bank’s broader £15 billion lending fund, first launched in 2014, to support UK SME enterprises.
Martin Hanson, Head of Agriculture at HSBC UK, said it was vital that farming businesses thrived.
“To do that the industry will need innovation, technical advancements and thought and change leadership, as well as, access to finance to allow investment and change to happen.
“Our £1.2 billion fund will help businesses to develop, grow and drive investment,” he said.
Despite the challenging economic environment, 62% of UK businesses intend to increase investment in their business in the next year, according to research from HSBC.
The focus will be on four fundamental areas of their business in 2021 – employee well-being, customer experience, cash flow/capital management and security.
Taken from farming guide
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