Agricultural & Farm Finance
We arrange Agricultural Bridging Loans and Farm Financing from £50k to £250m for multi-purpose use including property & land purchases, renovation, development, diversification, livestock/plant/machinery, generational transfers, tax or just cashflow.
Whether you need a tractor loan, more goats, dairy equipment or want to diversify into a solar farm or other renewable/geo-thermal plant, our loans, secured on agricultural or residential property and land, and are available to any credible business proposal with a viable exit strategy.
Our finance is available to farms in England, Scotland, Wales and Northern Ireland.
We offer experience-based, impartial information, sourcing finance from specialist UK-based lenders to ensure your rates are as low as possible for your specific circumstance.
Our Farm Finance service
- Market-leading property farm finance from £50,000 to £250m
- Monthly interest rates from 0.75% pm
(Lower rates for £700,000+ loans or less than 50% LTV) - LTVs up to 70% (up to 100% finance if additional collateral is available)
- No monthly payments with interest rolled-up options
- Terms up to 24 months
What can farm financing be used for?
Our agricultural loans can be used for…
- Residential and Agricultural Property Refurbishment
- Residential and Agricultural Property Purchases
- Refinancing existing borrowing
- Land Purchase
- Livestock Purchase
- Recovery & Restructure
- Renewable Energy Development
- Diversification
- Generational Transfers
Commercial ventures always come with a level of uncertainty, but thriving in the farming and agricultural sector can be a particularly tough. Property maintenance, mechanical breakdowns, unseasonal weather, livestock issues and rapidly changing circumstances throughout the food supply chain are common day to day battles.
Even farmers and landowners who are primarily focused on agriculture are now justifiably seeking to diversify their revenue sources; be it through investing in renewable energy, change of use, development and hospitality opportunities.
Short-term financing make or break for the sector, from farming, agriculture, equestrian to horticultural many businesses success hinges on fast access to funds to help sustain or radically evolve their business model.
Farm Finance Lending Criteria
| Loan to value (LTV) | 70% maximum |
| Loan term | 3 to 24 months |
| Loan amount | £50,000 up to £250m |
| Interest options | Rolled-up, retained or serviced |
| Interest rates | From 0.75% |
| Decision | Immediate decision in principle |
| Completion |
Up to £300k in 3 days |
| Early repayment fees | None |
| Availability | Secured on assets in UK & Europe Individuals, Companies, SPVs No credit & adverse credit considered |
| Exit strategy | Sale or refinance |
A guide to farm finance and its uses
Farm finance in the UK is a form of financing specifically tailored to the needs of UK farmers and agricultural businesses. It can be used to cover a wide range of agricultural needs, from buying land and buildings to purchasing livestock or farming equipment and farm diversification. Farm finance can be used in a variety of ways and can provide farmers with the capital and funds they need to either maintain their operations or to help them grow and expand their businesses.
This guide will explain what farm finance is, what benefits it provides, and offer some examples of how farmers in the UK are using it to boost their revenue.
Contents
Farm Finance uses
Farm finance can be used for a variety of purposes. Here's just some examples.
Purchasing of different types of farm equipment and machinery
Farm finance can be used to purchase different types of farm equipment and machinery. Many of these items, such as tractors, telehandlers, and combines, can be expensive and it can be difficult for farming businesses to afford them without some form of financial help. With farm finance, farmers can purchase the equipment and machinery they need, often at a fraction of the capital outlay, allowing them to get the best value for their money.
It can also finance Biomass Boilers. Biomass boilers burn wood pellets, which are a more sustainable alternative to traditional fossil fuels. When these pellets are burned, they produce heat, which can be used in a variety of ways on the farm. For example, the heat can be used to dry crops, heat water, and generate electricity.
Purchasing of different types of farm stock and materials
Farm finance can also be used to purchase materials and supplies for the farm. Seeds, fertiliser, livestock feed, and other supplies are necessary for any farming operation but they can be expensive too. With farm financing, farmers can buy the supplies they need without having to tap into their own cash reserves.
Farm diversification
Farm diversification is the process of branching out into new activities and areas, which offer additional income streams and help to reduce the risk of relying solely on agricultural crops and livestock.
This could include the introduction of renewable energy sources such as wind turbines and biomass boilers, expanding into garden centres and farm shops, or offering agri-tourism activities such as farm tours and accommodation.
By diversifying farm activities, farmers can increase their revenue by utilising different areas of expertise to make the most of their resources.
Benefits of farm diversification
Farm diversification has a range of potential benefits, both financial and otherwise.
By increasing the amount of revenue generated from different sources, diversification can help to stabilise cash flow, reducing the reliance on monthly payments from government schemes and higher prices for produce.
Diversification can also increase the yield from otherwise “idle” areas of the farm, such as arable land only used during the agricultural season. Furthermore, it can help to ensure the long-term viability of the farm by providing a more varied and dependable income source, and allowing the farm to adapt to changes in the industry.
Examples of farm diversification
Wind Turbines
Wind turbines are capable of generating large amounts of clean, renewable energy for farms, which can then be sold to the leading electricity companies. This can not only create a significant additional source of income, but also improve the overall profitability of the farm, as electricity costs are greatly reduced.
Garden Centres & Farm Shops
Expanding into Garden Centres & Farm Shops: By expanding into garden centres and farm shops, farmers can take advantage of the additional profits that can be made from selling produce onsite. As well as providing fresh produce, these outlets can sell potted plants, gardening equipment, and popular gifts and souvenirs.
Farm Tourism
Agri-tourism is becoming increasingly popular in the UK, with many farmers now offering organised farm tours, onsite accommodation, and educational experiences to visitors. These activities can generate an additional source of income, whilst promoting awareness of sustainable farming practices and the importance of protecting the environment.
Other examples of diversifying a farm’s revenues could include Solar Farms, Equestrian Centres and Children's Activity Centres.
Solar Farms
Solar Farms are becoming increasingly popular as they generate clean energy and generate a passive income for the operation.
Equestrian centre
An equestrian centre can generate revenues from both the sale and hire of horses, as well as allowing space for additional activities such as riding lessons, shows and events.
Children activity centres
Children's activity centres provide a fun and safe place for children to enjoy, while also generating income from parties, events and activities. All of these examples, and many more, are ways of using farm finance to diversify and increase the farm’s revenue streams.
The ways in which farm finance can be used to maximise profits are vast and varied. By placing a focus on diversification, farmers can reduce their reliance on traditional sources of income, improving overall profitability and helping to ensure the long-term sustainability of their farm.
Farm finance for property development
Farm finance can be used for a variety of property development purposes, including property refurbishment, barn conversions, and ground-up development for holiday lets. Farm finance can be used to capitalise on existing assets and capitalise on the inherent potential inherent in rural land.
Property Refurbishment & Barn Conversions
The construction sector has seen a surge in demand for rural property over the past decade from those looking to escape to the country. This influx of demand has created an opportunity for farmers to capitalise on the land they have available, by either refinancing existing assets or using farm finance to refurbish and upgrade existing buildings, such as barns, for use as holiday lets or hospitality projects.
Farm finance can be used to finance the cost of converting barns or other existing buildings into habitable properties. This can include everything from improvements to insulation and roofing, to the installation of amenities, and more. Refurbishment projects can be especially beneficial for farms, as they can increase the capital value of the land whilst also providing an additional revenue stream for the farm. Furthermore, the agricultural benefit of these projects are clear, with the land being utilised for farmland whilst also providing an extra revenue stream.
Ground-Up Development for Holiday Lets
Farm finance can also be used to fund new developments for holiday lets and hospitality businesses. By investing in new constructions, farmers can create an additional source of revenue for their farm, often providing a stream of income that is steady and reliable. This form of farm finance allows farms to make use of their land to create new projects that can bring additional visitors to their land, often contributing to the regional economy in terms of support for local businesses.
This form of farm finance requires more capital than property refurbishment projects, as it requires additional costs for researching the area, securing permits and licences, and more. However, the potential rewards for this type of investment could be seen in additional income, as well as potentially better land utilisation with more tourism activity in the area.
Farm finance offers farmers in the UK a range of options to make use of their land assets and maximise their returns. In particular, property refurbishment and ground-up developments for holiday lets are two ways in which farm finance can be used to create additional income streams for the farm. These types of projects offer the potential to increase the value of the land, while providing an additional source of income, and contributing to the local economy.
More ideas to improve your farm's balance sheet
Farm finance can also be used to invest in new technologies to increase productivity and reduce costs. This could include advances in production practices, such as crop protection, crop nutrition, irrigation systems, and pest control.
It can also be used to invest in and implement systems to help farmers better manage and track their inputs, costs, and outputs. These can include software solutions, farm management tools, and tracking devices.
Finally, farm finance can also be used to purchase or invest in land. This can help farmers to expand their acreage, diversify their crop production, or even acquire a second farm. This can also be used to generate additional income streams, such as rent or lease arrangements.
Conclusion
Farm finance is a vital tool for farmers in the UK, and is an important way of helping to increase revenues and improve financial stability. It can be used for a variety of purposes, such as diversifying income streams, investing in new technologies to increase productivity, and investing in new land.
By making use of farm finance, farmers can ensure that their operations are resilient and profitable in the long-term.
We're experts in agricultural and farm financing, securing you the best deal from Uk-based specialist lenders including private investors and family offices.
Get expert assistance today, we're on hand to answer any questions about your finance.
Call our friendly team on 01202 612934, we're ready to help.
Renewable energy diversification
According to the NFU, 25% of UK farms plan on investing in renewable energy diversification by 2020. This could be wind turbines, solar PV farms or biomass boilers. A bridging loan can help farmers make this investment and diversify their operations.
Diversifying into related business
Farmers may require extra funds to invest in a new or related business which they believe will provide them with additional income. A bridging loan is the perfect solution for this purpose.
Equestrian diversification
Horse riding schools, equestrian centres and holiday accommodation are growing in demand across the UK. A bridging loan can provide farmers with the financial assistance to diversify their business into this sector.
Holiday parks
A bridging loan can be used for purchasing or extending a holiday park or expanding the business into the tourism sector diversifying the business and provide the farmer with an extra source of revenue.
Garden centres
Financing the purchase of a garden centre and the land around it is a common reason for taking out an agricultural bridging loan.
Working capital
Farmers typically require working capital for day-to-day activities such as paying wages or purchasing feeds and fertilisers. Bridge loans are a short-term financing solution so can be actioned quickly and are usually paid off within 2 years.
Property acquisitions
Purchasing additional property or finding an investment opportunity is another reason why farmers may need bridging finance. Investment opportunities tend to happen quickly and can be missed if financing delays the transaction. With agricultural finance they'll be able to purchase what they require without having to wait.
Generational transfers
Many farmers wish to pass down their farm and business to the next generation but require additional financing for this process. A bridging loan can help with that. The current owner can use the loan to purchase the property and/or equipment from his parents, who will then receive a lump sum.
Property renovation & refurbishment
Upgrading a farm building is a good opportunity for farmers to extend its life, improve efficiency, repurpose the building or enhance its appearance. Typically renovation and refurbishment is a more cost effective solution than demolition and building new.
Buying additional land
In order to expand a farm or diversify, farmers require additional space for the business. A bridging loan can help facilitate this.
Investing in equipment, plant & machinery
Farmers typically require financial assistance with purchasing new equipment that will help them improve the operation of their business and provide better yields.
Purchasing livestock
Many farmers are looking to increase their herd size, but they require additional financing in order for them to make the investment. A bridging loan can be used towards this purpose.
Why use an agricultural bridging loan?
Farmers need to invest in their future. This is especially true for those who are looking to grow their operation and start a new business venture. Agricultural bridging loans, also known as farm financing or agricultural finance, offer a variety of benefits that can provide the means for farmers to pursue an expansion project or purchase new equipment without having to sell assets. In this article, we will discuss 10 different ways agricultural bridging loans can be used by farmers and answer some frequently asked questions about these types of loans.
What are agricultural bridging loans?
An agricultural bridge loan is short-term financial assistance provided by banks and other lenders that enables farmers to invest in their business.
What can I use agricultural bridge loans for?
Examples of loan purposes range from purchasing livestock, equipment, plant, machinery, land, diversification, generational transfers, property renovations and refurbishment - almost anything.
Who is eligible for agricultural bridging finance?
Farm Finance is also open from both UK and International clients such as offshore borrowing vehicles from lenders. As long as your assets are in the UK our farmer finance is available to you.
How long does the application process take when applying for farm financing?
Typically loans up to £200k can be completed within 3 days and for loans up to £250m can take 14 - 30 days depending on their complexities.
What is the typical repayment term for agricultural bridging finance?
Typically, a loan will be repaid within 24 months depending on your individual needs. Loans can also be refinanced if you need additional time to repay funds due to unforeseen circumstances such as adverse weather conditions that affect crop yields or if your development is running behind schedule.
