Farmers Guradian
Topics
Nine ways to keep your farm vehicles safe

Nine ways to keep your farm vehicles safe

Arable Farming Magazine

Arable Farming Magazine

Dairy Farmer Magazine

Dairy Farmer Magazine

British Farming Awards

CropTec

LAMMA 2019

New to Farmers Guardian?
Register Now
Login or Register
New to Farmers Guardian?
Register Now
New to Farmers Guardian?
Register Now

You are viewing your 1 free article

Register now to receive 2 free articles every 7 days or subscribe for unlimited access.

Subscribe | Register

Dairy farmers looking to invest as milk prices strengthen

Farmers are reinvesting after "two years of belt tightening", according to Barclays.


Peter   Hollinshead

TwitterFacebook
Peter   Hollinshead
TwitterFacebook
Share This

'We are seeing a number of requests for capital investment' - #teamdairy farmers looking to invest as milk prices strengthen

With better milk prices starting to filter through, some producers were paying off debt while others looked to be taking on extra borrowing to invest for the future.

 

The latest figures from Barclays showed its dairy lending book was slightly up for the year to June compared to the equivalent period a year ago.

 

But since milk prices started to improve, industry consultants have been urging producers to start paying off debt as a top priority in case of another industry downturn.

 

Confidence

 

Oliver McEntyre, Barclays national agricultural strategy director, said: “Our debt levels are stable, having very marginally increased from last summer to this summer – whether this indicates a degree of confidence in the industry and people reinvesting after two years of belt tightening who knows, but that would be my assumption.”

 

He openly admitted people ‘would expect overdraft debt to be dropping at the moment’ but said the more efficient producers were looking to new investments.

 

“We are seeing a number of requests for capital investment and while the book remains fairly steady we are seeing down payment of debt in one column but further lending going out in the other," he added.

 

Plans

 

While accepting the future was uncertain until Brexit outcomes become clear, he was not too worried over this future lending provided each request was backed by an investment plan which tackled production costs and raised efficiency.

 

“What the two years of poor prices have done is an awful lot of mind focussing. I believe producers are far more focussed on knowing what their costs are, and to be able to identify the difference between those things that they need to have rather than those that are nice to have,” he added.


Read More

BBC responds as Countryfile comes under fire for ‘controversial’ dairy bull calf story BBC responds as Countryfile comes under fire for ‘controversial’ dairy bull calf story
Dairy hoping to repeat 'organic success' with free-range Dairy hoping to repeat 'organic success' with free-range
From the editor: Dairy's boom and bust is height of dysfunctionality From the editor: Dairy's boom and bust is height of dysfunctionality
The farming industry’s reliance on migrant labour - from dairy to horticulture The farming industry’s reliance on migrant labour - from dairy to horticulture

TwitterFacebook
Post a Comment
To see comments and join in the conversation please log in.

Most Recent

Facebook
Twitter
RSS
Facebook
Twitter
RSS