Finance

NFU Scotland welcomes Scottish Government announcement to bring forward payment schedule

NFU Scotland has welcomed an announcement from Scottish Government that it is to bring forward the timetable for crucial support payments by almost a month.

The announcement that support payments will now commence in September 2022 rather than October will deliver vital cash flow certainty to farmers and crofters and help with business planning. It also allows the thousands of farmers and crofters to budget and plan for any purchases or deals they may do at this important event in the Scottish farming calendar.

The announcement comes one month after 11 key Scottish farming organisations, led by NFU Scotland, wrote to the Scottish Government to express concerns over the impact that the unprecedented cost inflation is having, calling on it to bring forward crucial support payments.

NFU Scotland President Martin Kennedy, a signatory to that letter said: “The farming and crofting industry is currently facing unprecedented input price pressure around the likes of fuel, fertiliser, feed grain and wages.

“That input cost inflation has been long-lasting and is already having a significant impact on business decisions at a farm and croft level. This has implications not only for primary producers but also many upstream and downstream businesses that rely on agriculture for their customers and their suppliers.

“While there is no quick fix to the current crisis, the Scottish Government decision to agree to our request and bring forward Basic Payment Scheme (BPS) and Greening payments will help to build confidence across the industry, as we enter one of the busiest weeks in the Scottish farming calendar

“This announcement about the accelerated delivery of payments to bolster cash flow is an important boost.”

£1.2bn SMA fund launched to support farmers across the UK

HSBC UK has launched a £1.2 billion fund today for agriculture businesses as part of its commitment to help British farmers to innovate, thrive and grow.

With the agriculture sector contributing almost £10 billion of the UK’s GDP, and the wider agri-food sector contributes £127 billion or 6.5% of national food production according to the National Farmers Union (NFU), the sector is vital to the UK’s collective recovery.

Despite an environment of high input costs, workforce shortages and the removal of Basic Payments which has already started in England, many farming customers remain alive to the many opportunities for diversification, expansion and improving efficiency through investment in their farms and remain confident about the future prospects for their businesses.

Farming plays a critical and unique role in the move towards net zero both in reducing emissions and in the sequestration of carbon. The wider move towards carbon neutrality in Agrifoods may lead to greater integration with retailers and processors which often requires investment in operations and both physical and digital systems.

As the first bank to have a dedicated agriculture team, HSBC UK provides specialist knowledge and support focusing entirely on the industry. Our national network of over 100 Agriculture Managers are dedicated to helping farmers and growers drive their businesses and realise their goals.

The Agriculture Fund is part of a broader £15 billion lending fund to support small and medium-sized enterprises (SMEs) across the UK. Supporting regional economies, employment opportunities and driving growth. Since launching the SME Fund in 2014, HSBC has lent more than £90 billion to UK SMEs as part of its commitment to help British businesses to grow in the UK and internationally.

Martin Hanson, Head of Agriculture at HSBC UK, said: “Farming is vital to the UK’s economic recovery, and many of our customers have told us they are ready to invest for growth and are taking a long term view of the industry. With the £1.2 billion fund for agriculture businesses, we want to make a significant contribution to economies across the country, driving employment, local wealth and growth by providing funding, when and where it’s needed most. We know our customers are innovating and adapting at pace and British farmers need their bank to be flexible, supporting future growth opportunities.”

CLAAS to invest €40 million in Bad Saulgauto increase production capacity

Due to the increased demand for its range of Green Harvest products and to allow for future growth, CLAAS is to invest 40 million Euro in its Bad Saulgau production plant, which is home to the Green Harvest product range and where everything from mowers through to the chopping system and crop flow for JAGUAR forage harvesters is manufactured.

To accommodate current and future demand, the