FARMERS are struggling to cover the costs of running their business as bills have soared in the last year.

Research by NatWest found that 99 per cent of farmers surveyed have seen one routine expense rise above the general inflation rate of nine per cent.

Nearly three quarters of those surveyed have seen their energy bills increase above that, two thirds saw their fuel bills do the same, just over half had their feed costs creep up, and 48 per cent noticed fertiliser costs jump.

These extra expenses are making it harder for farmers to reduce their carbon emissions, Many expressed frustration or guilt at not being able to take the eco-friendly efforts they had planned despite being worried about the impact climate change will have on their industry.

Farmers surveyed wanted to reduce their carbon footprint by switching to an energy supplier with stronger environmental credentials, improving the energy efficiency of their premises, or increasing renewable energy usage. NatWest is looking to support farmers to invest in reducing carbon emissions now, with a view to lowering outgoings and delivering positive benefits in the long run.

This includes an additional £1.25bn in funding to help the industry deal with increasing input costs and create more sustainable ways of working.

To further protect customers from price increases, NatWest is also freezing all charges and tariffs on its Business current accounts for at least 12 months, as well as reducing interest rates on its range of Small Business Loans up to £40,000, by between 0.5 per cent and 1.35 per cent dependent on term and amount.

The bank is providing capital repayment holidays, where the business only needs to pay the interest on a loan for an agreed period, reducing the amount due each month as well as increases to overdrafts. Ian Burrow is head of agriculture at NatWest. He said: “The farming industry can play a critical part in helping the UK reach Net Zero.

“Our customers within the sector are keen to take action against climate change and many have already, but we need all in the sector to challenge themselves as to the part they can play in a more regenerative, restorative and reparative way of working.

“However, the challenge of input cost rising squeezing margins is currently hampering efforts.

“We’re working to remove the barriers and help the sector make changes now, which will save money and safeguard businesses in the long term.”

Visit www.natwest.com/climatehub