A new generation of entrants to farming is being held back by an absence of opportunities rather than a lack of finance.
RBS head of agriculture, Jimmy McLean, addressed a meeting of young and prospective farmers in Perth on Tuesday.
He said the banks were prepared to lend to new businesses, but very few people were coming forward.
“Finding the opportunity is the barrier,” he said.
“A small tenancy is more affordable than becoming an owner-occupier but there aren’t many of those around.
“But even if a young person succeeded in getting a small starter tenancy, the next step is a really difficult one, unless the tenant has generated capital or stock elsewhere.”
Mr McLean suggested that keen prospective farmers should consider the possibility of share farming.
“There’s not much of that in this country, whereas in Australia and New Zealand it’s a key route into the industry,” he said.
“I’d like to see new entrants consider that possibility.”
Mr McLean said his bank had backed two of the three young farmers who spoke at the conference.
He said: “We are positive about lending, but what is critical is the amount we can lend. A business plan needs to be viable.”
He said depending on circumstances, his bank would lend up to 30% on the value of owner-occupier businesses, and for a tenant he would go as high as 50%.
Meanwhile NFU Scotland announced that Stirlingshire young farmer Mark Donald has been elected chairman of its New Generation committee.
Mark, 36, the tenant of one of the Scottish Government’s “starter” farms at Port of Menteith, said he wanted the committee to be at the forefront of the Scottish farming industry.
“The New Generation committee will offer a strong voice on CAP reform, land reform, Less Favoured Area Support Scheme, environmental expectations and the constant need to improve margins with rising costs,” he said.