A customer story on switching to HSBC Agriculture

Terrig Morgan, dairy farmer, Clwyd

When a change in DEFRA regulations forced the Morgan family to reinvest, we were on hand to provide the practical support needed to turn necessity into a valuable opportunity for expansion.

Terrig Morgan's dairy farm in Wales has been in his family for over four generations. He works the land in partnership with his wife and son Edward, who plans to one day take over full running of the farm. Together they own over 80 hectares and milk approximately 130 cows.

Previously, they reinvested in the farm as and when required. But when government regulations forced them to reinvest or consider getting out of milk production, we were able to step in and give them the specialist advice, support and funding necessary to get a major plan of expansion up and running.

The farm is in a Nitrate Vulnerable Zone; which means certain precautions have to be taken to minimise the level of nitrates re-entering the soil. The Morgans required the facilities to store slurry for up to five months. Under the regulations this meant the farm needed new slurry storage in addition to a new cowshed and replacement milking parlour they had anticipated installing next year.

Terrig began to organise the expansion and had submitted a loan request to his then bank when our North Wales representative, Rhys Davies arranged a meeting and introduced our head of agriculture, Allan Wilkinson.

"At first he just suggested a chat about the industry" Terrig explains "but when he heard about our expansion he said HSBC might be interested in getting involved. He looked at our plans and was able to offer us better terms than our original bank."

But, having been with his bank for generations, Terrig wasn't planning on moving without good reason. The friendly and committed service he received in the period before the changeover helped to make the decision.

" HSBC looked at our plans and was able to offer us better terms than our original bank."

"We quickly developed a personal type of working arrangement. It really has been a positive experience and good for the business overall," Terrig explains. "We'd lost a lot of personal contact with our previous bank over the years. When the need arose to raise a loan the long term relationship wasn't in place."

However, the new arrangement gave Terrig, his wife and Edward confidence as a partnership. As Terrig states "The three of us needed to be happy, and to have the confidence that the bank cared about the partners and not just the overall business. And that's clear with HSBC.

"You need complete peace of mind, you don't want niggling doubt when you're investing. You want support, which will give you confidence. That's what HSBC has brought us a cordial and business-like relationship."

This is particularly important for the Morgans going forward, as Edward starts to increase his role in the management of the farm. He has further plans for expansion, and wants to be able to capitalise upon expansion opportunities in the future.

"Our bank really needs to understand our long-term situation" Terrig explains. "Edward is keen to grow the business. He needs to be prepared for new opportunities - such as taking on more land - and he wants a supportive bank that recognises this, and a bank relationship that gives him the confidence to take these opportunities when they arise."

To arrange a visit from one of our team, contact your local Agriculture Manager.