Dealing with lenders amid an outbreak
Farmland has historically been regarded as a relatively stable asset class by lenders, however the uncertainty brought on by Covid-19 may see a shift in this attitude.
28 February 2021
The simplest way for rural operators to avoid issues with lenders and ultimately receivers is to make sure that, whatever the situation with the business or farm, the mortgage payments are met. If you are at risk of missing payments, then early communication of your concerns and issues to your bank or lender is critical.
If the debt comprises an overdraft or trading account, make sure that you have other banking facilities in the event that your working account is frozen by the lender.
During any dispute with your lender, you need to be able to continue to meet the day-to- day payments of running the farm, otherwise issues of animal welfare or crop harvest can mount up.
Review all options for your assets, consider planning gain, alternative uses and quasi leisure schemes. It is likely that the rural market will change beyond all recognition in the coming years and adaptability to change will mean that businesses will survive.
Harry Dunger, Restructuring and Recovery
