Lloyds is expanding financial support for UK farmers as prolonged dry weather puts pressure on yields, feed supplies, water use and cashflow, with specialist managers working with affected businesses to address short-term funding needs.

The bank said eligible customers could access working capital solutions, overdraft support, loan repayment holidays, interest rate reductions, temporary lending facilities and wider lending arrangements through Lloyds and Bank of Scotland. The support is being offered as conditions vary across regions, crops and types of farming business.

Lloyds customer Tom and Samantha Summerfield, who run Keele Dairies near Newcastle-under-Lyme, have increased their cashflow facility with the bank. The additional funding is intended to provide greater flexibility and buying power for essential inputs while the dairy manages drought conditions and low market prices.

The bank said dry conditions can reduce grass growth and increase feed requirements for livestock farmers, while arable businesses can face lower yields, changes to harvesting patterns and greater pressure on water supplies. These effects can create working capital pressures for farms already dealing with broader costs and planning future investment.

Lee Reeves, UK head of agriculture at Lloyds, said: “Prolonged dry weather is creating real challenges for many farming businesses, from pressure on yields and feed availability to water use and cashflow.” He added that specialist managers were speaking with customers across the UK about options for managing working capital, overdraft requirements and wider lending arrangements.

Lloyds said it was continuing to provide longer-term financing alongside immediate assistance, including its Clean Growth Financing Initiative for eligible investments in areas such as energy efficiency, renewable energy and water management. Its Agriculture Transition Finance programme is designed to help farmers move towards regenerative farming practices.

The bank said it works with organisations including Soil Association Exchange, the Woodland Trust and Wildfarmed on initiatives covering soil health, biodiversity, woodland and hedgerow creation and regenerative agriculture. Lloyds described itself as one of the UK’s largest agricultural lenders and said its broader support includes finance for almost one million UK businesses.

Reeves said: “British agriculture is vital to food security and rural communities, and we remain committed to supporting farmers with the finance and expertise they need to grow and remain resilient.”

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