Andy Dodd (Chippenham)

With interest rates having risen over recent months and farms still looking to invest, are there any options available that still appear to be underutilised?

If you’re looking to invest in solar, slurry storage, or even slurry hoovers under the new Farm Investment Fund, green funding might be worth investigating. The banks have all pledged to be targeting Net Zero by 2030 and have outlined plans to only lend to businesses in the future that do the same.

To support this, they are already reviewing the businesses they lend to and establishing a base line so investment in ‘green’ projects will only help. With the right terminology, it’s amazing what can fit their criteria. It might be milking robots as the information coming through the software can help with more preventative herd care rather than treatment. Can a reduction in energy also be demonstrated? Will a slurry store potentially reduce leaching when slurry is applied in less-than-ideal conditions and thus improve water quality? Does the investment in a slurry hoover mean you are not running a tractor on diesel, thus reducing the use of fossil fuels and carbon dioxide emissions?

The benefits of meeting the green lending fund criteria can mean lower interest rates and either not paying an arrangement fee or getting it back as a lump sum after 12 months. Thinking a little outside the box when putting in a lending request can both save you money and put you in the proactive box, if and when banks decide they will only lend to those rural businesses doing their bit for climate change.

To discuss your future projects and how they might fit, contact: andydodd@fcgagric.com, or contact your local FCG office.