Bank vows to help farmers hit by snow

At the bank's annual briefing on the farming sector, Iain Clark, the agricultural business manager for Scotland, acknowledged that the early onset of winter, coupled with higher feed and straw prices, would stretch the financial resources of beef and sheep farmers but said the payment of 400 million of Single Farm Payment to Scottish farmers this week by the Scottish Government would ease the pressure.

"We are ready to talk to our customers about bridging any shortfall in short-term cashflow until calves and lambs are sold next season," Clark said. "Livestock farmers are facing tremendous practical difficulties at present but they are financially resilient, their credit worthiness is good and we are ready to help them overcome the financial consequences of recent weather."

Clydesdale Bank has been increasing its share of the agricultural market with a 10 per cent increase in lending to farmers over the past year compared with an average rise of 4 per cent reported by other banks.

Responding to government pleas to make finance available to business, head of agribusiness James O'Mahony said new lending by Clydesdale and its sister bank, Yorkshire, had increased by 4.7 billion and the bank was on track to deliver its two-year pledge to lend an extra 10bn by October, 2011.

"Agricultural investment is playing a full part in helping us to fulfil that pledge," said O'Mahony. "We've seen an impressive degree of investment by farmers with many focusing on long-term improvements to strengthen their businesses."

Looking towards 2011, O'Mahony added: "Being a top third performer has always been valuable but the premium for those who can sustain a top level ranking is arguably becoming more pronounced as each year passes."