Lloyds TSB Increases Agricultural Lending

The fact that lending to the agricultural sector by Lloyds TSB Group, which owns Agricultural Mortgage Corporation (AMC), has increased in the course of the past two years means that there is strong belief in the good prospects for the agricultural industry. The lending of Agricultural Mortgage Corporation (AMC) increased by 25% in 2007, by 40% in 2008 and by 30% in 2009. During the annual meeting of the Central Association of Agricultural Valuers Mr. Paul Spencer, who takes the post of agriculture director at Agricultural Mortgage Corporation, claimed that the current challenge that the organization faces is management of short-term volatility; however, the prospects of the agricultural sector are set to growth. It is interesting to note that other divisions of the Lloyds TSB Group have been seeing many redundancies in the past months. However, Agricultural Mortgage Corporation, in contrast to other divisions, recruited 15 new employees. Moreover, the group’s spokesman claims that the share of agricultural lending that belongs to AMC amounts to 30%. Mr. Paul Spencer added that Agricultural Mortgage Corporation plans to do even more in the sector. At the same time, senior agricultural manager at Lloyds TSB, Mr. Jon Rose was also optimistic on the availability of loans for agricultural needs; however, just as Mr. Spencer he is determined that farmers need to pay great attention to volatility management. In his opinion, the three options for doing so include buying fuel, fixing the single payment rate, and selling crops forward. Mr. Jonathan Allright, a representative of Agricultural Mortgage Corporation, says that the cheapest mortgage loans and the ability to manage volatility make these days a good time for investment in the agricultural sector.