Farming bank Oxbury has announced it will launch a new 'globally unique' financial facility to support UK farmers in making sustainable changes to their practices.
The facility will provide funding to help British farmers manage cashflow and capital needs to transition their farms to meet climate goals.
Research by the Soil Association Exchange shows that the majority of producers have little or no financial flexibility to adapt their farming systems.
With climate change pressures and demands from government and supply chains, Oxbury, the UK’s only bank dedicated to farmers, said it recognised the need to help them obtain funds to change their practices.
Oxbury's facility will operate in conjunction with other financing initiatives, such as government grants and private sector payments for farming practices, creating a 'blended finance' model to extend the impact of multiple partners in the value-chain.
As well as giving farms access to finance, the facility will help farmers measure and prove that the changes that they have implemented are delivering results.
According to the bank, carbon footprints will be used at the outset of the facility and will be ongoing to measure reductions in emissions.
Satellite earth observation combined with soil and environmental data from the ground will be used to access high-resolution views on the farm’s improvement in soil organic carbon (SOC) levels.
Speaking at the LEAF Conference 2025 later today, Oxbury co-founder Nick Evans will set out how the bank’s new Transition Loan Facility rewards farmers to make sustainable changes.
Before the conference, Mr Evans said: “Oxbury spent two years developing the Transition Facility ensuring that it understood the needs of farmers and the supply chain.
"The bank concluded that the whole industry including government, banks and the supply-chain needs to work together to support farmers to remain profitable while reducing emissions and improving soil health.”
The bank said that these factors, combined with evidence of the changes in business practises, may be shared by Oxbury’s customers with the supply chain and government to prove the positive environmental impact of on-farm activities.
Oxbury has also partnered with Downforce Technologies to help calculate the annual average SOC – initially – on more than 120,000 hectares of customers’ farms.
This will provide data for farmers to share, calculate their net zero position and track the outcomes of transition actions on soil health.
What are the benefits?
The agricultural bank has listed benefits of using its financial facility:
• Facility amounts of up to £500 per hectare farmed with a minimum facility size of £25,001 to a maximum of £500,000.
• Interest rates from 1% above the Bank of England base rate for a period of up to 6 years
• Annual facility fees from 0.5% of the facility amount
• Flexible repayment terms based on cash flow, facility can be continuously repaid and withdrawn during the facility period. Interest payable monthly on outstanding balance.
• No early repayment charges
• No need to change existing bank relationship
