The agricultural community couldn’t be accused of having had it easy over recent years…. and just as we’re getting used to the shock of Brexit and what it might mean the Bank of England tells us interest rate rises are just around the corner.
Of course some might say that we’ve enjoyed low interest rates for too long already and the increase is inevitable. True, but the impact on the farming community will perhaps be greater than on many others. At a time when the industry is already under pressure the effect on the cost of exports alone cannot be underestimated.
There are some useful tips in this article from Farmers Weekly but all we can really do is brace ourselves.. and prepare for yet more uncertainty.
A rise would increase the cost of borrowing, although the rise from the Banks historically low rate of 0.25% is only expected to reach 0.5%.
But the pound is likely to strengthen as a result, which would have a bigger impact on farming businesses, say advisers, because sterlings 30-year low has boosted agricultural exports and pushed up farmgate prices and BPS payments.
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