FARMING businesses are to benefit from discounted margins on financial loans for certain farm investment projects following the announcement of a further tranche of European Investment Bank (EIB) funding through the Agricultural Mortgage Corporation (AMC).

To promote business and sustainability, the EIB is again providing funding to the AMC at low commercial rates in return for onward lending to small and medium-sized enterprise (SME) customers on a discounted basis.

Those borrowers eligible for the EIB funding will receive a discount of 0.8% off the normal loan margin. The minimum amount which borrowers can apply for is £25,500 with a maximum of £11 million.

AMC agent Rebecca Hammett of Savills in Exeter says, “This is a fantastic opportunity for farmers to obtain discounted margins on loans for qualifying farm projects such as new farm buildings, milking equipment or farm machinery to improve existing farm businesses.”

In addition, farm-based renewable energy projects such a photovoltaic panels, wind turbines and anaerobic digesters can benefit from the funding. Farmers will also qualify for the funding with proposals such as slurry stores which will ensure that they are Nitrate Vulnerable Zone (NVZ) compliant.

For those farmers who have applied for recent government grant schemes, such as DEFRA’s Farming and Forestry Improvement Scheme, the proposed EIB funding will provide an increased incentive to borrow at reasonable rates, alongside the grant, to complete their farm improvement projects. For further information on the availability of EIB funding with the AMC or advice on improving your farming business, contact Savills on 01392 455700.