The banking sector has warned that cashflow pressure will become more prevalent later in the year as high on-farm costs bite further.Defra is having monthly talks with agricultural banks on the effect of cost pressures. This is a more frequent programme than in the past, said Roddy McLean, director of agriculture at NatWest.Speaking about farmers' increasing borrowing requirements, he said: “It's a steady trickle of requests at the moment that we are getting for additional funding, but we expect that it has the potential to ramp up as we move through the summer and intothe autumn."Farmers are being urged to revise cashflow plans more frequently as there is a risk of early Basic Payment Scheme payments being used to cover high input costs and then not being available for other costs further down the line.
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