Farming businesses with the LEAF Marque certification are now eligible for discounted loan arrangement fees from HSBC as part of a new initiative.
The bank has launched its 'Sustainable Farming Pathway' with industry charity Linking Environment And Farming (LEAF), its first partner on the scheme.
As part of it, farmers with the LEAF Marque certification are being offered discounted loan arrangement fees on term lending amounts from £25,001.
Farmers who complete a LEAF Sustainable Farming Review are also eligible, both organisations confirmed.
Lending in scope includes flexible business loans, commercial mortgages and property development loans.
Grace O’Dwyer, interim head of agri banking at HSBC UK, said the new Sustainable Farming Pathway would help farms "transition to more sustainable techniques".
She said: “HSBC UK is a significant lender to farms in the UK and our research shows around two-thirds of farms are currently making commitments to transition to sustainable practices.
"To become more sustainable, farmers identified the areas they want to invest in as renewables (54%), slurry storage (22%) and energy efficiency (20%).
"By working with LEAF and future partners, we have the opportunity to directly support farmers who want to make sustainable choices."
Clare Mike, LEAF’s director of business development, said farmers with the assurance scheme were increasingly focused on incorporating sustainable practices into their operations.
"They’re reviewing how to best balance soil sensitivity, enhance landscape and nature habitats, protect water, invest in renewables and boost biodiversity."
