Sustainable Farming Pathway aims to make access to finance more affordable
HSBC UK is offering farming businesses discounts on loan fees to help support their sustainability journeys.
The bank has launched the HSBC Sustainable Farming Pathway, with LEAF signing up to be its first partner on the scheme.
Farming businesses with the LEAF Marque certification, or those that complete a LEAF Sustainable Farming Review, will be eligible for discounted loan arrangement fees on term-lending amounts from £25,001.
Lending in scope includes flexible business loans, commercial mortgages and property development loans.
Martin Hanson, head of agricultural banking at HSBC UK, said: “We are delighted to launch the HSBC Sustainable Farming Pathway to help farming businesses transition to more sustainable techniques.
“HSBC UK is a significant lender to farms in the UK and our research shows around two-thirds (70 per cent) of farms are currently making commitments to transition to sustainable practices. By working with LEAF and future partners, we have the opportunity to directly support farmers who want to make sustainable choices.
The banking giant also found that more than two-thirds (70 per cent) of UK farms are engaged in agri-environment schemes, as defined and recognised by Defra, to support nature and biodiversity enhancements.
To become more sustainable, farmers identified the areas they want to invest in as renewables (54 per cent), slurry storage (22 per cent) and energy efficiency (20 per cent).
Clare Mike, LEAF’s director technical and business development, said: “LEAF Marque farmers are increasingly focused on incorporating sustainable practices into their operations. They’re reviewing how to best balance soil sensitivity, enhance landscape and nature habitats, protect water, invest in renewables and boost biodiversity.
“Sustainability is high on the agenda for the UK’s agri sector, and the new HSBC Sustainable Farming Pathway can help many businesses in their transition journey.”
