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Bank Offers Discounted Loans to Egg Farmers

by 5m Editor
20 June 2011, at 7:36am

UK - Poultry farmers investing in new housing and production systems could get a discount of up to 0.8 per cent on loan interest rates from Lloyds TSB Agriculture for a limited period.

Gareth Oakley, Agriculture Director at Lloyds TSB, explained: "Lloyds TSB Agriculture has access to funds from the European Investment Bank which are available to encourage investment in small and medium sized enterprises including agriculture.

"We are expecting a lot of interest in the discounted rates from poultry farmers who need to update laying systems to meet the new European standards or who are wanting to make their production more efficient.

"The saving could be worth around £10,000 on a 10-year loan of £250,000 but funds are limited so we are urging farmers to act quickly if they want access to take advantage of the discount."

A wide range of investments are eligible to be considered for the funding including buildings, some equipment and machinery. Minimum loan amounts are £25,500 with the maximum at £11 million. No project should cost more than €25 million, including funding from other sources. Loans of between two and 10 years may be eligible for a 0.8 per cent discount, whilst if the project requires funding over a longer term (up to 25 years) the discount may still be available in the slightly lower level of 0.6 per cent. Loans can be on a fixed or variable term basis.

Mr Oakley added: "Some egg producers still need to invest in new laying systems if they are to comply with the rules that come into force in 2012 and continue in production, while broiler producers are investing in new facilities that use feed and energy more efficiently. The discount allied to continued low interest rates could offer a means of investing in necessary improvements cost effectively.

"Producers wanting to take advantage of the scheme should speak to their local Lloyds TSB Agricultural Manager as soon as possible."

Details are also available on the bank's web site [click here].