The issue of farmers being placed in “special measures” (or “business support” as banks prefer to call it) has been a hot topic of late.  Knowing that your bank has placed you on the financial naughty step is cause for huge stress on a farm business, in addition to the financial and other pressures that will be in evidence already.   It frequently has further implications for the farmer and the family.

I have recently been helping a new client who was very upset to have just been placed in “special measure” by their bank.  After a small number of meetings I have prepared a report, Options Review, budgets etc. which we used in a meeting with the bank, including the agricultural manager and the “business support” manager.  I am glad to say that our proposals have all now been accepted by the bank and their Head Office underwriters.

The client has the extra funding they need, in the way that they need it, to support the business and investments they intend to make over the next few months.  A cost reduction plan is well under way. So despite an initial tale of woe, we have together managed to turn it all into a tale of progress.

Perhaps more importantly, whereas initially I had a new client who was stressed, depressed and (frankly) drinking too much, they are now far more relaxed, and in a far better place, mentally.

In our experience the banks really do not want people to be in “business support” for any longer than they have to, as it costs them extra time and resources, and their costs of funds lent to the customer are higher as well.  Banking risk is a matter we have all heard a lot about in recent years.

Being in business support is by no means a kiss of death.  But what a farmer must do is to address the issues seriously, and take good professional advice on the possible routes ahead.

Before the bank tells you, maybe you should proactively contact Charles at charlesholt@fcgagric.com or your local FCG office for a confidential no obligation conversation.