Lloyds Banking Group has reinforced its commitment to UK farmers by providing fee-free lending, financial support and resources for agroforestry projects over £25,000.
The banking group offers financing for agroforestry costs through its Clean Growth Financing Initiative (CGFI), which features a zero per cent set-up fee for term lending on sustainable farming investments. This loan helps UK farmers reduce their ecological impact while enhancing the financial and environmental resilience of their businesses.
Ben Makowiecki, Agriculture Sustainability Director at Lloyds Banking Group, explains, “Integrating trees with crops or livestock can help boost overall farm income and resilience. Agroforestry can significantly enhance farm productivity through higher land equivalent ratios (LER) compared to single crops, potentially achieving 120-140% productivity.
“This makes the land work harder, utilising vertical space, while bringing broader benefits, including increased biodiversity, enhanced soil health, improved water management and shade for animals,” he adds.
“We’ll fund agroforestry in the same way as other sustainable farming projects through CGFI, but it’s crucial to have a clear, comprehensive plan. This ensures all aspects of the project, from initial costs to long-term maintenance and market considerations, are thoroughly accounted for,” he says.