Farmers considering investing in agricultural and rural business projects should apply through the Agricultural Mortgage Corporation (AMC) for a new tranche of European funding, says land agency firm Strutt & Parker.

The AMC has negotiated access to a multi-million pound fund provided by the European Investment Bank (EIB) and can offer a discount of 0.65% off the normal pricing. The EIB-discounted funds are aimed at stimulating investment and job creation in small and medium-sized businesses, including farming.

AMC agent Alistair Cochrane, partner in Strutt & Parker’s Morpeth office, said: “These loans could be particularly useful for those farmers looking to improve their buildings. Many were built in the early 1980s using FHDS (Farm and Horticulture Development Scheme) funding but have become dilapidated and do not meet the needs of today’s modern farming systems and regulations. Many producers, whether livestock or arable, are now appreciating the positive impact that modern buildings can have on enterprise profitability.”

Mr Cochrane said: “Despite some serious immediate challenges, such as poor weather, rising costs and reduced lamb prices, continued investment in farm infrastructure will be key to realising the long term opportunities that the growing demand for food should offer North East farmers.

“For example, several years of difficult weather patterns have highlighted the importance of good grain storage and drying facilities, which can help mitigate the impact of bad weather.

“Being able to sell grain out of store when prices are good rather than being forced to sell ‘off the combine’ at the prevailing price because of lack of storage is a key determinant of financial success.”

He added: “Beef and sheep producers also realise the ‘management time’ benefits that a well-designed housing system can bring. A good shed that incorporates proper handling systems can be a real time saver. In an increasingly competitive sector, with skilled labour scarce and expensive, and where supply contracts are a feature, attention to detail are key elements.

“For farmers, the current historic low borrowing rates, combined with discounts and the temporary increase in capital allowances, can offer a real opportunity for value-for-money investment in a range of projects. Whether trying to deliver against a supply contract, meeting regulatory or cross compliance requirements such as NVZ rules or just needing to replace an outdated shed, now could be a great time to improve farm prospects.”

For further information please contact Mr Cochrane in Strutt & Parker’s Morpeth office on 01670 500870 or by email alistair.cochrane@struttandparker.com.