Press Room

NatWest Launches Single Payment Scheme Loan
(19 April 2005)

NatWest has today launched a Single Payment Scheme loan designed to help agricultural businesses address any shortfalls caused by the new EU regulations. The loan, which will be available through all NatWest Agricultural Managers, will ensure that despite any delays in the payment of the Single Payment Scheme, businesses will not suffer.

Ian Burrow, National Agricultural Manager, said: "The coming months could see many agricultural businesses struggling to maintain a positive cashflow and it is paramount that this is addressed as soon as possible. At NatWest we are aware that these changes may have an impact on farm businesses and are keen to help in anyway possible.

"However if there is one thing that this industry is used to, it's change and I am sure that it will adapt well, no matter what direction EU policy may drive agriculture."

In the longer term, businesses will also need to address the effect of modulation and financial discipline on their businesses. The impact of the changes to Common Agricultural Policy will vary greatly, depending on the type of business involved. Our research shows that some businesses, such as a 750-acre arable unit with potatoes, would only see a slight reduction of £3,500 in support by 2012, whereas a similar size business focussing purely on combinable crops will see a £21,000 fall in support.

It is therefore important that farm businesses focus on these mid to longer-term aspects when drawing together their business plans.