The majority farmers can look forward to a positive year and should be re-investing for the future, according Andy Ritchie, head of rural businesses and a partner at Campbell Dallas – Scotland’s third largest independent firm of chartered accountants.

Despite the current gloom in the cereal and ware potato markets, Mr Richie, who deals with more than 200 farmers said agriculture is at an advantage when it comes to borrowing money as the industry is looked at much more favourably than other business by banking institutions.

Speaking prior to a panel evening at Perth Ice Rink on the evening of Monday January 8, he said: “Our experience dealing with banks recently is that almost all are still willing to lend to good farming businesses and although lending margins have risen, they have not increased at the same level as other industry sectors.

“There is still competition between banks to win over new farming business which is keeping margins lower than other sectors. Arrangement fees have increased slightly and are pretty much non-negotiable, with most banks willing to lend at a margin usually over bank base rate. This is slightly higher than a couple of years ago, but with low interest rates the overall cost of lending has never been cheaper.”