The first anniversary of Oxbury Bank’s new entrant scheme has been hailed an industry success after more young people have been given the opportunity to kick-start a farming enterprise.
Oxbury, which is the only UK bank dedicated to British agriculture, created a scheme last year to plug the gap for new entrants.
Access to finance is often cited as one of the biggest barriers for young people wanting to start a farming business.
Following its launch in September 2022, 'New Gen' has already paid out millions of pounds, providing young entrants with the chance to realise their farming ambitions.
Funds have supported a range of projects, including funding grazing land and the purchase of additional breeding ewes to set up a profitable business.
Statistics show that women have accounted for 40% of those who have received funding, and most new enterprises have been in the dairy sector (32%).
As part of New Gen, Oxbury provides up to 100% of the financing required by new entrants. Depending on the business plan, applicants may not need to input any finance themselves.
Edward Johnson successfully used the scheme to grow his dairy business at New Buildings Farm, Hilderstone to milk 600 Holsteins.
“I’ve been able to push my dairy business forward quicker and get where I’m wanting to be sooner, I feel with their understanding of the industry it gives me greater confidence to keep investing and growing my business.
“I make full use of their scheme having quarterly meetings with my farm consultant where we can keep track of business performance and identify where we can improve.”
Flavian Obeiro – aka the Kenyan Pig Farmer – and his partner Nikki Clarke are two successful New Gen applicants who are now actively farming a 61-acre tenancy in Tynefield.
“You do the application, and you can have all the knowledge and the passion, but it always boils down to money,” says Flavian about the tenancy application process.
“I’ll do whatever it takes to make it work, but you still need that starting capital to get it going.”
Nick Evans, Oxbury co-founder and managing director, said of the scheme: “Interviewing these applicants is one of the most rewarding and best parts of my job.
"The enthusiasm and determination to making it work, and in many cases seeing what they have already achieved, gives me more confidence in the future prosperity of farming than almost anything else I see or do."
