Lloyds Bank hatches new loan to mirror egg productivity cycle

Micheal Summers

Lloyds Bank Agriculture has launched a new loan specifically designed for egg producers in the East Midlands.

Aimed at providing lending to fund replacement pullets, the loan mirrors the egg production cycle and offers an initial repayment “holiday” followed by repayments over the productive life of the flock.

Lloyds Bank Agriculture area director for the East Midlands Micheal Summers said the “Pullet Finance” loan package recognised that pullets have a period at the start of their time on a farm when they are settling in and reaching maturity, and are not yet productive.

He said: “With pullets typically taking eight weeks from arrival to reach full production, Pullet Finance helps farmers in the East Midlands optimise their cashflow over the lifetime of each flock, as they only start paying for their birds when they are producing income.

“The repayments then mirror the usual 14-month lifespan of that flock, so the finance is paid off at the end of each cycle and a new loan for the next flock can be taken out.

“This means each loan is attached to the productive life of the single flock it’s funding, with the potential of loans running in parallel for different flocks, making it easy to track margins and profits for that cycle”.

Summers added: “Agriculture is a unique industry in terms of its profit cycles, from short-term in pigs and poultry, to annual with crops, to longer term investment in breeding stock and cattle enterprises.

“Loans like Pullet Finance, which track individual profit cycles, help alleviate working capital pressure and free up cash that would otherwise be tied up in new livestock. They can also support expansion and strengthen your balance sheet”.