Lloyds Reinforces Agriculture Support as Drought Conditions Affect Rural Businesses

Lloyds Reinforces Agriculture Support as Drought Conditions Affect Rural Businesses

(IN BRIEF) Lloyds is strengthening support for UK farmers as prolonged dry weather adds pressure to rural businesses by affecting yields, feed supplies, water use and cashflow. Through Lloyds and Bank of Scotland, specialist agriculture managers are working with farming customers to assess local conditions and provide tailored financial support, which may include working capital solutions, overdraft support, loan repayment holidays, interest rate reductions, temporary lending facilities and wider lending arrangements. The bank highlighted Keele Dairies Ltd, run by Tom and Samantha Summerfield near Newcastle-under-Lyme, which has increased its cashflow facility with Lloyds to improve flexibility and buying power for essential inputs. Lloyds is also helping farmers invest in longer-term resilience through initiatives such as the Clean Growth Financing Initiative and Agriculture Transition Finance, while working with partners including Soil Association Exchange, the Woodland Trust and Wildfarmed to support environmental performance, regenerative farming and sustainable rural business models.

(PRESS RELEASE) LONDON, 14-Aug-2026 — /EuropaWire/ — Lloyds is reinforcing its support for UK farmers as prolonged dry weather places additional pressure on the agricultural sector, affecting yields, feed supplies, water use and cashflow.

Through Lloyds and Bank of Scotland, specialist agriculture managers are working closely with farming businesses to understand local conditions and assess tailored support for short-term financial needs.

Support for eligible customers may include working capital solutions, overdraft support, loan repayment holidays, interest rate reductions, temporary lending facilities or broader lending arrangements.

Support for farmers

Among the farming businesses receiving support are Tom and Samantha Summerfield, who run Keele Dairies Ltd near Newcastle-under-Lyme.

The business has worked with Lloyds to increase its cashflow facility, giving the farm greater flexibility and buying power for essential inputs while supporting future growth.

The additional support is helping Keele Dairies respond to challenging conditions, including periods of drought and low market prices, while continuing to prioritise the welfare and productivity of its herd.

Impact of dry weather

The support comes as farm businesses face a range of seasonal pressures, with the effects of dry weather varying by region, crop and farm type.

As some of the UK’s largest lenders to the agricultural sector, Lloyds and Bank of Scotland are providing immediate financial support while also helping farmers invest in longer-term resilience.

This includes Lloyds’ Clean Growth Financing Initiative, which offers discounted lending for eligible green investments such as energy efficiency, renewables, water management and waste management.

The bank also provides Agriculture Transition Finance, which is designed to support UK farmers as they move towards regenerative farming practices.

Dry conditions can affect farming businesses in several ways.

Livestock farmers may face reduced grass growth and higher feed requirements, while arable businesses may experience pressure on yields, harvesting patterns and water use.

These challenges can quickly lead to cashflow and working capital pressures, particularly for farms that are also managing wider cost pressures and planning future investment.

Lee Reeves, UK Head of Agriculture at Lloyds, said prolonged dry weather is creating real challenges for many farming businesses, including pressure on yields, feed availability, water use and cashflow.

He said Lloyds’ specialist managers are speaking with customers across the UK to provide tailored support, including options to manage working capital, overdraft needs and wider lending arrangements.

Reeves added that British agriculture is vital to food security and rural communities, and that Lloyds remains committed to supporting farmers with the finance and expertise they need to grow and remain resilient.

Partnering with the agricultural sector

Lloyds works with partners across the agricultural sector to help farmers make practical and commercially viable changes.

Its partnership with Soil Association Exchange provides tools and guidance to help farmers assess environmental performance, including soil health, carbon emissions and biodiversity.

Lloyds is also supporting the Woodland Trust’s MOREwoods and MOREhedges schemes.

In addition, the bank has worked with Wildfarmed on the Food & Nature Resilience Fund, a model designed to support investment in regenerative farming without taking land out of food production.

About Lloyds Banking Group

Lloyds Banking Group is a leading UK-based financial services group providing a wide range of banking and financial services, with a focus on personal and commercial customers.

As part of the Group, Lloyds provides financial support and guidance to households, businesses and communities across Britain.

The Group helps businesses across the UK’s regions and nations, and across sectors and company sizes, by providing funding and support for growth at home and abroad.

Lloyds supports almost one million UK businesses with digital and relationship banking services as they start up, grow and develop.

In 2026, Lloyds Banking Group plans to make more than £35 billion of new finance available to companies operating and investing in the UK, supporting jobs, growth and prosperity across communities.

Of this amount, £9.5 billion will be dedicated to small and medium-sized enterprises.

Through relationship teams based across the UK and internationally, Lloyds combines local understanding with global expertise to provide long-term support for clients and their growth ambitions.

The Group offers finance beyond term lending, including import and export trade finance, structured and asset finance, securitisation facilities and capital market funding.

Its product specialists provide tailored financial services and solutions, including cash management, international trade, treasury and risk management services.

Media Contact:

Nicola Hammond | nicola.hammond@lloydsbanking.com | +44 020 7356 2374

SOURCE: Lloyds Bank plc