Barclays has introduced a discounted interest rate across several of its Green Loans for Business, aiming to make emissions reduction and biodiversity enhancement more affordable for the agriculture sector and other UK businesses. These Green Loans are designed to help fund the purchase or refinance of eligible green assets.
Having supported the agricultural sector since 1744, Barclays now banks nearly a quarter of the UK’s agricultural businesses, lending £1 in every £4 to the industry. A recent survey of its arable customers revealed key climate-related challenges, alongside efforts farmers are already making to reduce emissions and boost biodiversity.
According to the survey, 65% of respondents have experienced the impacts of climate change on their farms, with increased weather variability and rainfall being the most common effects. Additionally, 45% of farmers recognise the importance of reducing greenhouse gas emissions, and 28% have already measured their on-farm emissions. Furthermore, 83% consider enhancing nature crucial for the future of their farms.
However, only 34% of Barclays’ arable customers currently have a plan in place to become more sustainable and achieve net zero. The high cost of acquiring necessary equipment and machinery is a significant barrier, with 45% identifying this as a challenge to progress.
In response, Barclays Business Banking is expanding its range of Green Loans for Business, offering a discounted interest rate to support farmers in their journey towards net zero. Eligible products include the Green Barclayloan for Business, Green Commercial Mortgage, SIPP/SSAS, and Green Buy-to-Let Mortgage for Businesses.
Adam White, Head of Agriculture, Barclays Business Banking said, “The agriculture industry is uniquely exposed to the impacts of climate change. We know many farmers want to do more to reduce their emissions and promote their on-farm biodiversity, but costs remain a challenge. This is where we can help.”
He added, “Remaining profitable is the number one priority for our arable customers, and our goal in discounting the interest rates on these loans is to help reduce the costs tied to lowering on-farm emissions. This is all part of our commitment to provide our agriculture customers with the support they need to be financially and environmentally sustainable.”