The head of UK agriculture at HSBC, Martin Hanson, has confirmed that the bank has significant liquidity in place to help farmers through short-term cash issues, and also continue to make long-term investments on their farms.

During a visit to NI, Hanson said HSBC was keen to grow market share in agriculture. At present it has around 20% of the UK agriculture lending market, and in NI it holds around 15%.

“Agriculture is a very safe part of the business. It is not high margin, but the long-term nature of it is really attractive to us,” Hanson told the Irish Farmers Journal.

In NI, the bank has tended to target larger producers, keen to expand their business whether by diversifying into other enterprises or in projects that drive efficiency.

“Progressive farmers are the sweet spot for us. The more diversified the farm is, the better they are doing generally,” said Hanson.

He believes the move towards net zero carbon emissions will also create opportunities in renewables, and he is open to funding the likes of anaerobic digestion, solar and wind.

But in the short term Hanson recognises that input price inflation is having a significant impact.

He believes that energy prices could remain high right out to the end of 2023. “We have to take a long-term view. Cashflow is a short-term issue and we will make sure there is enough capital to keep going,” he said.

That input cost pressure is currently most acute in pigs. Every client is different, and in some cases, where capital is being eroded, producers might need to take tough decisions.

“A small number have gone. Some have scaled back. Others can see it through. There are maybe some green shoots of recovery around price,” said Hanson.

He also confirmed that a recent decision by HSBC to close 69 branches across the UK, including two in NI, is driven by footfall and the move to online, and will not affect farmer clients in NI.

“Farmers are bothered about funds, and having that specialist relationship with an agri manager,” he responded.

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