Farmers with concerns about the financial implications of new Nitrate Vulnerable Zone (NVZ) legislation should visit the Agricultural Mortgage Corporation (AMC) stand at The Dairy and Livestock Show where there will be a major focus on the funding of NVZ-related projects.

With fewer than 500 days to the full implementation of NVZ regulations on 1 January 2012, the AMC is suggesting affected farmers should start to plan with a sense of purpose to ensure full compliance and minimize the risk of future financial penalties.

“A well considered plan will help to keep your project on track and costs under control, and this will assist in securing cost effective funding,” says Keith Thomas the AMC’s Regional Agricultural Manager for Cheshire & North Midlands.

AMC has produced a new publication that will be freely available on its stand. The publication includes articles from the Environment Agency and farm business consultants Andersons as well as a guide to funding options for NVZ-related projects.

With closed periods for slurry applications a key feature of the NVZ regulations, the requirement to have up to 6 months of storage will mean many farmers will need to extend their existing capacity.

“We shall be focusing on how we can help farmers finance developments such as slurry store expansion, better slurry management systems or new cattle housing,” says Mr Thomas.

“We appreciate that many farmers will lack enthusiasm for what is essentially a regulatory requirement, however there are longer term financial benefits to be gained from improved slurry management and nitrate utilization and it is important to appreciate these advantages.”

The new AMC publication also contains a real case study that puts into a practical context how one dairy farmer has used a 20 year loan from AMC to install a system that will accommodate all the slurry from the 270 cow herd for five months over the winter.

“The case study explains how the new system has made the handling of slurry much easier and allowed the farm to reduce its fertiliser bill by more than £10,500 a year,” says Keith Thomas. “The combination of a positive outcome for the business and sound financial planning has resulted in a more sustainable business going forward.”

As well as a focus on NVZs, AMC’s team of Agricultural Managers expects to be discussing a wide range of farm business development plans with visitors to the stand.

“With improving prospects for the livestock sector and continuing low interest rates we are seeing a strong demand for borrowing from farmers looking to invest in new production and milking systems especially,” adds Keith Thomas. “However, we are also seeing demand for financing other aspects such as land purchase and poultry diversifications.”

The AMC will be at stand number BM-247 in the Business Management Zone at the Dairy Event and Livestock Show. Those unable to visit the show can access a copy of AMC’s NVZ guide by visiting www.amc.co.uk.

• The Agricultural Mortgage Corporation PLC (AMC): AMC has been lending exclusively to the agricultural industry since 1928, and today has a ~30% share of the medium to long-term lending market in agriculture in the UK. As such, AMC is a market leader in the provision of medium and long term secured loans to the UK farming industry and aims to be the lender of choice on the basis of competitive terms and quality of service. AMC is a wholly owned subsidiary of Lloyds TSB Bank plc.
• The Dairy and Livestock Show takes place at the NEC, Birmingham on 7 and 8 September 2010.
• The new NVZ rules come into force on 1 January 2012 and are the Government’s response to the European Community’s Nitrate Directive which seeks to reduce the amount of nitrates from agriculture reaching the water. The directive sets the threshold for nitrates in water at 50 milligrams per litre. This is exceeded in many areas of the UK in both groundwater and surface water. The nitrate restrictions are focused on the areas where the problem is at its worst which includes 62% of England, 15% of Scotland and just 4% of Wales.
• Copies of the AMC’s NVZ guide will be available on the AMC’s stand and in the press room at the Dairy Event and Livestock Show.

 

For more information contact:

Mark Lawrence, Manager, Agriculture Marketing

Tel: 01264 386306   Email:    This e-mail address is being protected from spambots. You need JavaScript enabled to view it