Saturday, June 12, 2021

New flexible finance launches to ease dairy farm cashflow

Dairy farmers can now access flexible finance to ease cashflow at challenging times of year, following the launch of Oxbury’s Flexi-Credit Milk Cheque.

Operating in a similar way to an overdraft, but easier to set up and on more competitive terms, Flexi-Credit allows farmers to borrow up to 70% of their average quarterly milk payments per year. They can then pay in or withdraw money according to cashflow, with a minimum repayment of 5% per month plus interest.

“Cashflow can be extremely challenging at different times of year,” explains dairy farmer and consultant Grant Hartman.

“We have a year-round calving, housed herd, and in the spring we have to pay for rent, fertiliser, fuel, seeds and sprays on top of our ongoing feed costs.

“We can’t balance that with increased milk sales as we’re on a year-round supply with seasonality deductions for additional volume in the spring, so cashflow at that time is particularly difficult.”

Mr Hartman milks 650 pedigree Holstein cows at Trebersed Farm, Carmarthen, and in his dairy consultant capacity he helped Oxbury to tailor the Milk Cheque offering.

“It has to be easy to apply and competitively priced, and the level of credit must be balanced with the business,” he says. “For me, it’s an ideal bridge through difficult months.”

Borrowers can simply pay the money into their current account – which can be with any bank – and then repay when they want.

“So I could pay £10,000 for fertiliser while waiting for my milk cheque, and then repay it when my cash comes in,” says Mr Hartman.

Block calving herds may need to borrow at different times of year, for example to cover low milk sales over the winter.

Producers can manage their accounts online, and speak to agricultural specialists within the bank if they have any queries.

“I tested the online dashboard in April and it’s really user friendly – I can see how much I’ve borrowed, how much more I can take, and link my current account,” he explains.

“The senior and junior relationship managers all have a very good understand of farming, which is major strength.”

Part of Mr Hartman’s job is to keep the bank’s staff appraised on sector news. “If a processor’s milk price changes or input costs move sharply then I’ll update them so that they have all of the information they need.”

Nick Evans, co-founder of Oxbury, explains: “As a bank which is 100% focused on agriculture, we truly understand farming and know the challenges that producers face.

“Everything we do is aimed at helping farmers to achieve maximum stability and productivity year-on-year.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemic having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.
















Latest news

Related news

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close