Farming businesses on 'the journey to more sustainable practices' can now receive discounts on loan fees, as part of a new HSBC UK initiative.
HSBC UK has launched its 'Sustainable Farming Pathway' with the farming charity, Linking Environment and Farming (LEAF) as its first partner on the scheme.
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Farming businesses with the LEAF marque certification, or those that complete a LEAF Sustainable Farming Review, will be eligible for discounted loan arrangement fees on term lending amounts from £25,001. Lending in scope includes flexible business loans, commercial mortgages and property development loans.
Sustainable Farming
Martin Hanson, head of agricultural banking at HSBC UK said it was a 'significant lender' to farms in the UK.
"Our research shows around two-thirds (70%) of farms are currently making commitments to transition to sustainable practices. By working with LEAF and future partners, we have the opportunity to directly support farmers who want to make sustainable choices."
The bank found that more than two-thirds (70%) of UK farms are engaged in agri-environment schemes to support nature and biodiversity enhancements.
Environmental schemes
Phillip Wynn chair of the board of trustees at LEAF said: "As the first bank to offer discounted loan fees to farms certified to the LEAF Marque standard, HSBC UK is harnessing its role as a key lender in the UK agriculture sector to support environmental practices through our accredited management standard."
