The Agricultural Mortgage Corporation (AMC), part of Lloyds Banking, has introduced a new green loan to support rural businesses transitioning to sustainable farming practices.
Dubbed the Clean Growth Financing Initiative (CGFI), it will provide discounted lending to help the agricultural sector reduce its environmental impact. It can be used to finance a broad range of green investments with a 0% arrangement fee.
Lee Baker, national sales director, said that the project will help to advance sector improvements across priority areas including water, waste, energy use, carbon and greenhouse gas emissions reductions.
“AMC has a proud record of helping customers achieve their consolidation, diversification, or growth plans and we’ve been working to introduce a green lending product to complement this,” he said.
“CGFI can be considered for a wide range of sustainable and diversification investments options including energy supply upgrades such as solar panels and heat pumps, adding eco-pods or sustainable camping to their farm, enhancing wastewater treatment systems, or enable more sustainable production methods.
“These will help customers stabilise their energy costs and operate more sustainably, both in terms of the environment and financially, which are both vital steps towards future-proofing farms and businesses.”
He added that the streamlined approval process and flexible financing options should help support growers, with many projects not requiring additional eligibility assessments. “Many farmers are keen to introduce more sustainable practices or investments, but upfront costs can pose a significant hurdle. However, with the introduction of a CGFI loan to our financial support options for farmers, we’re able to equip them with the backing necessary to benefit from green growth opportunities and provide a foundation for long term business sustainability.”
For more information go to www.amconline.co.uk