Mr Black said; “Borrowings in the farming industry have continued to grow steadily. For example farmers have invested heavily to meet the demands of environmental regulations such as the EU Nitrates Directive. Bank borrowings in the industry are now in the region of £750 million so a cut in interest rates is welcome. We have come through a period of sustained interest rate rises and we hope that this cut will set the trend in the year ahead”.
In October the UFU hosted discussions with the Bank of Englands Chief Economist and Monetary Policy Committee member Mr Charles Bean. Clarke Black said the meeting had been an important opportunity to inform the Monetary Policy Committee about the impact of interest rate decisions on the local farming sector.