Policy & Lobbying

Loans to agriculture rise slightly

This week saw the publication of the 2013 survey of bank advances to Scottish agriculture and the finding that . The headline statistic that total outstanding loans to agriculture had risen by £53m to £1.72 billion, a 3% increase, or 1% in real terms.

 

Since about 2000 outstanding debt has kept roughly in line with inflation. This is however the fifth consecutive year that the outstanding debt has risen slightly, despite difficult lending conditions in the economy, though the total is still within the fluctuations seen since in the turn of the century.

Most of the outstanding loans to agriculture are to owner-occupier farmers (89 per cent). The remainder went to tenant farmers (eight per cent), agricultural contractors (two per cent) and livestock salesmen (one per cent) - this is a similar profile to previous years.

The survey can be found here: http://www.scotland.gov.uk/Resource/0043/00433599.pdf 

 

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