Oxbury Bank breaks the mould of traditional banking with Oxbury NewGen
Oxbury Bank – Britain’s first and only AgTech bank – is launching Oxbury NewGen – Funding Future Farmers, as the bank continues to back Britain’s next generation of farming talent and tackle demographic challenges in the sector.
Britain’s farming industry faces a demographic challenge like never before.
According to DEFRA’s own figures, the average age of Britain’s farm owners is now 59, with farmers aged 65 and over forming the largest group of farm owners in the UK.
Just 3% of farm owners are aged under 35; a figure that has not changed since 2005.
At the same time, the challenges of running farm businesses are becoming ever greater – ranging from the changes required to deal with climate change and biodiversity, changes in the economics of farming and farm consolidation, and changes in global and domestic supply chains.
There is an opportunity for budding entrepreneurs to bring innovative ideas and fresh ways of working; both of which will be essential to addressing these challenges and maintaining the resilience of the UK’s food supply chain into the future.
One of the major barriers holding back young people entering farming is a lack of access to funding and the historic reluctance of banks to back the new generation.
Oxbury NewGen – funding a new farming generation
Oxbury plans to tackle this barrier head-on through the launch of its new Oxbury NewGen product – a first-of-its-kind initiative in the UK aimed at new farmers aged 18-40.
It will provide funding for new farming ventures while also providing the advice and backing to give new entrants the best possible chance for success.
Oxbury will provide up to 100% of the financing required – depending on the business plan the applicant may not need to input any finance themselves. This level of lending to new farmers is not offered anywhere else across the UK banking landscape.
First-rate business and financial advice will be provided through a panel of independent national and regional farm advisory services, which will help create and track the delivery and progress of their business plan.
Oxbury will be funding that advice for a period of three years from the granting of the loan.
Nick Evans, Managing Director at Oxbury Bank said:
“British farming and food is going through a period of radical transformation. Generational shifts in the level of sustainability, provenance and production standards are taking place across the farming and food supply chain and the country’s long-term food security has never been more important.
“UK farmers are already playing a vital role in feeding the nation. But the industry is in need of new entrants to secure the industry’s long-term future. Farming is a challenging business, but it’s also a hugely exciting industry for budding young entrepreneurs.
“With the complex challenges facing farming, we know that access to finance and high-quality advice has been a barrier to new entrants coming into the farming sector.
“That’s why we’re launching Oxbury NewGen, a unique way to fund the next generation of UK farming talent.
“We are hugely excited to make our first offers to successful applicants and watch them succeed in the UK’s critical farming sector.”
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