• 99% of farmers hit by at least one rising input costs above inflation like energy, fuel, feed and fertiliser, in the last 12 months, forcing them to put important climate action on hold
  • According to new NatWest research, 82% feel a sense of frustration or even guilt at not being able to take action on climate change


Farmers across the UK have seen the costs of running their businesses soar over the past 12 months, with new research from NatWest revealing that 99% have seen at least one routine expense rise above the general UK CPI inflation rate of 9%.


Research conducted by the bank has revealed that 70% of farmers surveyed have experienced their energy bills rise above inflation, while 66% had seen fuel, 54% had seen feed and 48% had seen fertiliser costs exceed inflation respectively.


As well as placing pressure on businesses, rising input costs are hampering farmers' efforts to reduce carbon emissions. Of those surveyed, 82% of farmers report feeling a sense of frustration or guilt as a result of not being able to take planned action on climate measures. A large majority of farmers surveyed (88%) are also at least somewhat worried about the impact climate change will have on the future of farming but 37% feel unable to act on their climate transition plans due to having to prioritise critical business activity.


Ian Burrow, Head of Agriculture at NatWest Group, said:

“Climate change is a global challenge, but the farming industry can play a critical part in helping the UK reach Net Zero. We are aware that our customers within the sector are keen to take action against climate change and many have already – for instance, changing cultivation practices to minimum tillage or no-till, growing cover crops, growing mixed species grass swards, challenging themselves to improve the productivity of their livestock enterprises, precision applications of fertiliser, and using organic manure more effectively along with planting trees and hedgerows.

“But we need all in the sector to challenge themselves as to the part they can play in a more regenerative, restorative and reparative way of working. However, the challenge of input cost rising squeezing margins is currently hampering efforts.

“We want to provide the financial means and accessibility for farmers to pursue their climate ambitions. Addressing climate change and reducing environmental impact is a key issue for farmers, so we’re working to remove the barriers and help the sector make changes now, which could save money and safeguard businesses in the long term.


Farmers surveyed stated they want to reduce their carbon footprint by switching to an energy supplier with stronger environmental credentials (49%), improving the energy efficiency of their premises (54%) or increasing renewable energy usage (57%).


Recognising the role that the agricultural sector can play in ensuring the UK reaches its net zero targets, the bank is focusing on helping farmers achieve their sustainability goals within their businesses with a range of financial support measures. NatWest Group is looking to support farmers to invest in reducing carbon emissions now, with a view to lowering outgoings and delivering positive benefits in the long run. This includes an additional £1.25bn in funding to help the industry deal with increasing input costs and create more sustainable ways of working.


To further support customers, charges and tariffs on Business current accounts have been frozen for at least 12 months, as well as reducing interest rates on its range of Small Business Loans up to £40,000, by between 0.5% and 1.35% dependent on term and amount. The bank is also providing capital repayment holidays, where the business only needs to pay the interest on a loan for an agreed period, reducing the amount due each month as well as increases to overdrafts. Capital repayment holidays are subject to credit approval and it may take longer to repay the loan and cost more in the long run.  Payments may also increase afterwards.

In June, the bank publication of a white paper recommending a series of longer-term interventions that should be taken by policy makers, financial services and the sector itself to achieve a nature-positive transition.

The NatWest Climate Hub offers tips and advice for farmers looking to go and grow greener, as well as the tailored support the bank is providing to the sector such as Green Loans – an arrangement fee free loan offered to qualifying businesses to help them invest in sustainable infrastructure.


NatWest Group’s ’s agriculture relationship managers have also taken part in training to ensure they’re equipped to offer the most effective advice to farmers seeking support.


Information on the green finance packages available to agricultural businesses can be found on the NatWest Climate Hub.




This is for media use and not a financial promotion.

The £1.25bn lending package will deployed through a variety of routes, including Green Loans, conventional loans, asset finance and increased overdrafts.


Green Loans:

Green Loans with no arrangement fee are open to applications from eligible UK businesses with an annual turnover of less than £25m (other than for eligible UK Real Estate Finance businesses for whom alternative eligibility criteria may apply) who are seeking to take out a loan to acquire assets that fall within the eligible list developed by the bank and subject to review and change on an ongoing basis. Security may be required. Fees (other than arrangement fees) may apply. Over 18s only. Subject to status, eligibility and approval. Business use only. Any property or asset used as security may be repossessed or forfeited if you do not keep up repayments on any debt secured on it. Failure to comply with the terms of the loan agreement could lead to an event of default under the loan and (depending on their terms) may also impact other facilities of the borrower. Terms apply.


For more information on Green Loans visit:


Capital repayment holidays:

Capital repayment holidays are subject to credit approval and it may take longer to repay the loan and cost more in the long run.  Payments may also increase afterwards.


Business Loans & Overdrafts:

Security may be required. Product fees may apply. Over 18s only. Subject to status, business use only. Any property or asset used as security may be repossessed or forfeited if you do not keep up repayments on any debt secured on it.


For more information on Business Finance visit:

scroll to top