In basic terms, although most owner occupier farmers have reasonable levels of security, new debt may not be at such good rates as previously seen. In order to prise as good a deal as possible out of the bank there are several things you can do to help:

1.       Ensure you ask for the correct amount of capital – asking for more at a later date is a sign of poor planning

2.       Structure the debt over the correct period – too quick a repayment period will see overdraft pressure

3.       Make sure you have an up to date balance sheet and farm valuation – security is still vital

4.       Always allow for some sensitivity and over spend in plans and budgets

5.       FINALLY … Show the bank a professionally produced business plan. (CARA does these regularly) 

Having all five factors above covered will gain respect and understanding from the bank manager and help in negotiating a competitive rate of borrowing.