NFU president Tom Bradshaw: "There is clearly going to be an incredible cash flow challenge on the back of this last 12 months of weather."
A financial support scheme which could have provided relief for farmers impacted by challenging business conditions and poor weather over the past 12 months has been halted due to the General Election.
NFU president Tom Bradshaw confirmed the 51AV视频Business Investment Loans scheme had failed to get over the line due to Prime Minister Rishi Sunak's decision to call a General Election on July 4.
Earlier this year, NFU's director of strategy, Nick von Westenholz, said the farm lobby group had been in discussions with the Government about financial support farmers needed to support their businesses on the backdrop of some of the 'most challenging commercial and weather conditions in living memory'.
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According to the NFU, the central feature of FBILs would be a low, fixed-rate of interest for farm businesses and an initial 12-month capital repayment holiday, with Government covering the residual interest with lenders.
Modelled on the Coronavirus business loans, Mr von Westenholz said the package could provide farmers with relief to help make their businesses 'more resilient' to face 'highly-volatile commercial conditions' now and in the future while producing food and contributing to national food security.
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At Cereals last week, Mr Bradshaw highlighted his disappointment that the scheme had failed to make it over the line.
"There is clearly going to be an incredible cash flow challenge on the back of this last 12 months of weather," he added.
"But we have to be realistic that the public purse is going to be under huge stress.
"How we maximise the leverage of getting Government investment which relieves some of the cash flow challenge on farm businesses but enables businesses to invest in the future would have been crucial moving forward.
"That Covid recovery-type grant was something we very much thought could have taken some of that pressure off immediately but enabled farmers to invest in the future.
"We were thinking about how farmers could invest in buildings, infrastructure and land drainage on farm specifically.
"If the country and Government is serious about this line that food security is national security, and while the food security index is welcome, this shows a backward looking approach.
"What we need to do is to look forwards and make sure we are investing in infrastructure on farm which is going to deliver food security in the future.
"I think one of the barriers to investment is clearly higher finance rates and interest charges which is placing pressure on farm businesses.
"Something like FBILs could have been very affordable for Government where they would have pumped money into the industry with very little cost."
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