The land of the (sustainable) living

As a company with an extensive farming background,  Rural Asset Finance has always known how vital state support is to the country’s agri sector. Therefore it has welcomed the government’s National Food Strategy, which was published last week.

It’s arguably many years (or decades) overdue, and we’re still awaiting the finer details, so it’s a cautious welcome – but any commitment to support Britain’s farmers, even in principle, is fundamentally a good thing.

And this policy is especially timely now, in these uncertain times both at home and abroad. While most of the public has always understood the role of farming (broadly, at least), it’s taken the imperfect storm of Brexit and the end of EU subsidy, the tragedy of the Covid pandemic and the human horror of the war in Ukraine to underline the true, genuine worth of Britain’s farmers.

This is because over the past few decades food prices have been kept artificially low. A recent Office for National Statistics report showed that over the past 60 years the average household’s spend on food has halved from 33% to 16%, while other research puts that current figure even lower, at around 10%. This is down to many factors but among them are the single farm payments and CAP; subsidies which have enabled the public to buy cheaper food, facilitated by supermarket competition.

Without those subsidies, current food price inflation is merely a readjustment to the true value of what British farmers provide. Therefore government investment to offset the loss of these payments to farmers, helping to keep food affordable for the population, is absolutely necessary both for the public and the entire British farming community that feeds them.

Hence the National Food Strategy and its aims. It’s probably best to reserve judgment until we know the full details, and It remains to be seen if these goals are achieved, but they include a “prosperous agri-food and seafood sector” right across the UK, in keeping with the government’s levelling up agenda. The policy sets out a “sustainable, nature-positive, affordable food system” that supports “healthier, home-grown diets for all”. It wants to increase pay, employment, productivity, “high-quality skills training”; at the same time reducing environmental impacts and “maintaining high standards of food in the UK”. And as part of its plans to achieve these goals, Environment, Food and Rural Affairs secretary of state George Eustice has promised to plough £270million into the government’s Farm Innovation Programme.

Rural Asset Finance says it wholeheartedly supports all of these ambitions, and always welcomes any commitment to recognise and support farmers in the fundamentally vital work they do. In particular the company shares its commitment to ideas and innovation, which it says will be a “key component” to sustainably boosting production.

But policy documents are only of real value if the detail turns into effective action – and there is still only vague detail so far.

The National Food Strategy proposes a land use framework, but will not spell out what that means before 2023. That £270m for the Farm Innovation Programme rewards the winners of competitions – which is excellent but cannot include all farmers with ideas. Even if all the National Food Strategy commitments are fulfilled, they will take time to have a real impact. Whatever the outcomes and potential benefits, and there may be many, they will inevitably not be immediate.

The downside of this is that farmers are in a hurry. That imperfect storm has arrived already: the increased price of feed, fuel, fertiliser and dozens of other day-to-day expenses is hitting cashflows hard, and they need action that will increase their revenue opportunities right now.

Rural Asset Finance, however, is helping farmers right now. The company is financing ideas and innovations, supporting farmers to grow their businesses and expand their revenue right now, to root their businesses in sustainable, secure income that will secure their future for generations to come.

In the July issue of Farmers Guide, you can read about how Rural Asset Finance transformed the life of the youngest member of a farming family and took the pressure off the existing business by financing all the sheds and equipment for his brand new poultry unit – and straight away he’s won a contract with Stonegate.

This is the type of difference the company says it can make to arable and livestock farmers every single day. This past week alone, RAF has helped farmers as far apart as Essex and York – both with new cattle buildings so they can extend their fattening herds; financing tractors, balers, chasers for arable farmers in Cambridgeshire; and offering funding to a farmer in Suffolk for a new lorry to transport his animals.

The company says: “Your farm is helping ensure Britain’s food security, and we are right behind you. Rural Asset Finance understands farmers, farms and rural business models and we speak your language. We fund both equipment and land and buildings only on a fixed rate, fixed term repayment plan from one year to 30 years – we are one of a rare handful of lenders who can offer loans secured on land and buildings, as well as funds for equipment purchased with hire purchase or leased. If you own these assets already we can use them as security for new loans, to fund new projects.

“Hopefully the promises of the National Food Strategy will follow through with specific detailed commitments that value and recognise farmers’ role in feeding the nation. And hopefully those details will focus on shoring up the UK’s food security while supporting individual farmers. But at Rural Asset Finance, we already know how you can do that. Time is of the essence – so come and talk to us about your plans, and how we can help you achieve them, right now.”