14 July 2011

Farmers considering investment in their farm businesses could find out if they are eligible for discounted loan rates if they talk to The Agricultural Mortgage Corporation (AMC) at The Royal Welsh Show at Llanelwedd, near Builth Wells, Powys.

“As part of the Lloyds Banking Group, AMC has access to a £250 million fund provided by the European Investment Bank (EIB) aimed at stimulating investment and job creation in small and medium sized businesses, including farming,” explains Martin Waite, Regional Agricultural Manager for AMC covering south Wales.

“AMC’s access to this fund allows us to effectively subsidise loans for a wide range of farm and diversification projects including building works and livestock housing, machinery and equipment purchases, farm shops, milking parlours and farm energy schemes. We have already seen a lot of interest and so famers are encouraged to talk to us at The Royal Welsh Show to benefit from this opportunity which will only be available for a limited time whilst funds are still available.

“A lot of projects fall within the scope of the scheme and so it could help many farmers expand or invest in improving efficiency to strengthen the farm business for the long term,” says Mr Waite. “Coming at a time when interest rates are already historically low is an added bonus.”

Those borrowers eligible for the EIB scheme will receive a discount of 0.8% off the normal loan margin. The minimum amount borrowers can apply for in the scheme is £25,500 with the maximum set at €12.5 million, around £11 million. The discount is available on loans of up to 10 years for projects that have a definite start and end date. 

Martin Waite, his colleague Andrew Connah covering north Wales and staff from AMC will be available to discuss discounted loans on the AMC stand at Royal Welsh Show. The Show will be held between 18th and 21st July.