In March, the total lending to agriculture increased by 2.8% on the year before, which built on the growth of 6.2% for the previous 12 months. This compares favourably to the widely reported view that there is an overall contraction in lending by UK banks to small and medium sized businesses.
Lloyds TSB Agriculture leads the way in provided support to agriculture, lending an extra 14.9% to British farmers in March 2011 compared to March 2010.
“Agriculture is a key business for the Lloyds Banking Group not just because of its unrivalled credit history, but because of its future potential,” says Gareth Oakley, Agriculture Director at Lloyds TSB. “Most importantly, the large majority of the growth in our lending to agriculture is being invested in making farms more profitable and efficient with modern farm machinery and methods”
“Because farming has been such an important business for us for so long and we have an extensive network of specialist agricultural bank managers, we understand the everyday needs of farmers as well as their longer term business aspirations. We are committed to developing our team as we know they provide a service that is increasingly valued by farmers who are building their businesses.”
The growth in lending to agriculture is mirrored by a growth in total lending to SMEs by the Lloyds Banking Group. In the 12 months to March the group increased lending to businesses by more than 2% which compared to a fall for the overall banking industry sector. Under Government targets the Lloyds Banking Group is committed to lending £10.3 billion to SMEs in 2011. In the three months to the end of March it had already lent £3.3 billion.
“We have made clear commitments not only to lend, but to encourage enterprise,” says John Maltby, managing director commercial at Lloyds Banking Group. “We approve more than 80% of the loan and overdraft applications that we receive.”
Dr Tim Graham, Lancashire biodiversity manager for the Trust, said: “This is a very unusual discovery because dormice are very rarely found in Lancashire, so we would love to find out whether there might be a small population in the area.” UK populations of the animal have shrunk as mixed woodland of oak, hazel, sweet chestnut and other food-bearing plants have been cleared for agriculture and development.