NatWest is offering loan repayment breaks, reduced interest rates and temporary emergency lending without arrangement fees to farming customers facing financial pressure from severe drought conditions across large parts of the UK.
The bank said its specialist agriculture team is contacting customers proactively as dry weather affects crop yields, livestock feed supplies and farm cashflow. Eligible businesses can also seek help with overdrafts, working capital facilities and financing for projects designed to improve resilience, including water storage and reservoir schemes.
The support comes after the Environment Agency said on 10 August that 71.3% of England was officially in drought following the driest July in 190 years. Farmers have reported unusually early harvests and weaker yields, while livestock businesses have started using winter feed earlier than normal because of poor grass growth.
NatWest said it has not yet recorded a major increase in requests for financial assistance but expects demand to rise as farmers assess the effects of prolonged dry conditions later in the season.
Arable farmers are dealing with lower yields and earlier harvesting, while livestock producers face reduced grass availability and rising feed costs. Restrictions on water use and irrigation are adding to the pressure for some businesses. Higher temperatures are also increasing the risk of disease among livestock, potentially affecting productivity and farm incomes.
Ian Burrow, head of agriculture at NatWest Group, said British farmers were increasingly having to cope with extreme weather, from flooding to drought.
He said the challenge was moving beyond recovering from individual weather events towards preparing farms for conditions that were becoming more frequent.
Burrow said the bank expected pressure on some agricultural businesses to increase over the coming weeks and months. He encouraged customers experiencing difficulties to speak with their specialist agriculture relationship managers.
Farming minister Stephen Morgan welcomed the bank’s decision to increase support for agricultural customers. He said farmers struggling with the effects of drought should contact their banks and explore available assistance.
The latest dry spell comes after a difficult period for the farming sector. The 2024 wheat harvest was the second-worst on record, with the resulting losses estimated at about £600 million.
Farmers had already raised concerns during the spring about deteriorating conditions. The National Farmers’ Union reported that some growers had begun irrigation several weeks earlier than usual.
NatWest said its dedicated agriculture relationship managers would provide individual support to customers affected by the drought, including discussions about cashflow and financing options.
The bank is also encouraging farmers to seek assistance early rather than waiting until financial pressures become more severe.
