Concerns about future interest-rate rises could be behind the first real-terms fall in borrowing by Scottish farms for almost a decade.
Farms owed a total of £2.34 billion to banks and other lenders in 2017-18, figures show.
This was up £22m on the previous year but, when inflation was accounted for, lending to agriculture fell by £13m. This 1% drop was the first time since 2009 that outstanding borrowing had not risen in real terms.
“The slowdown in the amount of lending may be a sign of uncertainty in the future prospects of agriculture,” the Scottish Government said.
“Factors that could affect the slow-down might include overall weak growth in the economy, or concerns that interest rates may rise in the future.”
Borrowing by the sector is estimated to be worth 10% of farms’ total assets, described by government as “relatively low” because farming has a number of high-value assets such as land.
