NatWest is increasing support for agricultural customers as drought conditions and prolonged dry weather put growing pressure on farm businesses across the UK, impacting crop yields, feed availability and cashflow.
The move follows the declaration of drought across large parts of the UK after exceptionally low rainfall and sustained high temperatures, with many farmers reporting reduced yields, earlier harvests, water shortages and rising operational pressures.
In response, NatWest's specialist agriculture team is proactively engaging with customers and making a range of tailored financial support measures available to help farming businesses manage both immediate pressures and longer-term resilience. While NatWest is not currently seeing a significant increase in demand for support, the bank anticipates enquiries increasing later in the season as farming businesses evaluate the financial and operational effects of prolonged dry weather.
A key part of the bank's support is its network of named specialist agriculture Relationship Managers, who work directly with farming customers across the UK. This relationship-led approach gives customers access to dedicated sector expertise and a trusted point of contact who understands their business and can provide tailored support when challenges arise.
Support available for eligible NatWest agricultural customers includes:
- Loan repayment holidays
- Interest rate reductions
- Temporary emergency lending facilities with no arrangement fees
- Overdraft support
- Working capital solutions
- Access to specialist agriculture relationship managers
- Funding support for investments that improve business resilience, productivity and sustainability, such as water storage and reservoir projects that help capture water during wetter months for use during periods of drought
The prolonged dry conditions are creating significant challenges across the sector. Arable farmers are facing lower yields and earlier harvesting, while livestock businesses are contending with reduced grass growth and increased feed costs. Water availability and irrigation restrictions are also affecting some farming operations, increasing pressure on working capital and business planning. The impacts extend beyond drought itself, with warmer conditions increasing the risk of disease outbreaks that can affect livestock productivity and farm incomes. As weather patterns become more extreme, investment in measures such as on-farm water storage and reservoirs will play an increasingly important role in helping businesses build long-term resilience.
As one of the UK's biggest banks for agriculture, NatWest is helping farming businesses manage the impact of today's weather extremes while investing in the resilience needed for the future.
Ian Burrow, Head of Agriculture at NatWest Group, said: "British farmers are increasingly being forced to manage the consequences of weather extremes, from flooding one season to drought the next. The challenge for many businesses is no longer simply recovering from a single event but building resilience for a future where these conditions are becoming more frequent.
"While we are not yet seeing a material increase in demand for support, we expect pressures on some farming businesses to build over the coming weeks and months. With harvests progressing earlier than usual in some areas and livestock farmers already relying on winter feed stocks due to poor grass growth, cashflow and feed availability could become increasingly challenging. Through our network of named specialist agriculture Relationship Managers, we're ready to provide tailored support and guidance to customers as those pressures emerge."
Farming Minister Stephen Morgan said: "I know how difficult these dry conditions have been for farmers, and it's good to see NatWest stepping up support for their agricultural customers at this critical time. Through the National Drought Group, we are working hand-in-hand with industry, the Environment Agency and the water sector to help farm businesses manage today's pressures and build long-term resilience. I'd encourage any farmer struggling with the impact of drought to speak to their bank and explore what support is available to them."
NatWest is encouraging any agricultural customers experiencing financial pressure because of drought conditions to contact their Relationship Manager as early as possible to discuss the tailored support available. Those without a dedicated Relationship Manager can contact NatWest's specialist agriculture team at agriculture@natwest.com or agriculture@rbs.co.uk for those in Scotland.
