WITH BREXIT set to seriously shake up agricultural cashflows in the UK, bankers have signalled their willingness to take a chance on farming businesses supplying growing areas of consumer demand away from the historical distortions of the Common Agricultural Policy.
Foremost amongst these is venison production where, for decades, Scotland's small band of farmed deer producers have bemoaned their exclusion from the EU's various safety nets.
That is all set to change – with market analysts now predicting that the UK venison market will grow by a further 10 per cent in 2017, outstripping farmers' own ability to expand to meet that demand, the scene is set for the bankers to get properly involved.
Leading the charge is the Bank of Scotland, which this week unveiled a new range of finance options tailored to the venison industry, following on from last year's launch of sector specific finance for egg and poultry producers, all designed to help farmers overcome the financial barriers to establishing or growing their businesses.
According to the Venison Advisory Service, around one third of venison sold in the UK is imported, despite many processors and buyers actively seeking to source and stock home produced venison. To put this right, it has advised the BoS on how to structure financial support to help farmers manage the income cycles that are unique to deer production.
Key to that are 'repayment holidays' – farmers not needing to pay for their livestock until they are producing actual income.
BoS agriculture director Sandy Hay said: “The increase in demand for venison has created opportunities for UK farmers but starting or growing a farm is not always straightforward.
“There can be a period following the establishment of a new herd where the deer are calving, then maturing, but not yet generating income," he observed. "Our venison finance products will alleviate working capital pressure and free up cash that would otherwise be tied up in new livestock.
“Based on our deep understanding of farming and the nuances of the venison industry, we are meeting a specific need in a niche sector," he said. "We hope that this specialist finance will support and encourage farmers to expand in a growing market or start a new venture.”
Scottish deer farming pioneer, Dr John Fletcher, now a director of the Venison Advisory Service, said: “The UK venison market is growing significantly with demand currently exceeding supply. This has created a real opportunity for those considering setting up a commercial deer farm as a business venture or an additional revenue stream. It’s great to see Bank of Scotland creating tailored products to support these farmers.”
By Gordon Davidson
For in-depth news and views on Scottish agriculture, see this Friday’s issue of The Scottish Farmer or visit www.thescottishfarmer.co.uk
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