Guide to Farm and Agriculture Finance
Mark & Joy Dowell No Comments

Given the uncertainty of the effects of Brexit on the agricultural community in the UK there has been an increase in the rural community looking at diversification strategies as a way to buffer the potential loss of subsidies.

One of the challenges however is that following the financial crash funding the agricultural sector is difficult and many traditional sources of finance have disappeared. We do have specialist lenders that assist farmers and agriculture that can assist the farming and agriculture sector here in the North East of England, Northumberland and the surrounding areas such a Tyne Valley and beyond, although based here in Newcastle we can assist anywhere in the country.

UK Agricultural Finance is a specialist business lender to the agricultural sector that offers traditional, responsible lending to farmers throughout England, Scotland and Wales.

Farm finance is on the rise again and is becoming an attractive sector as farmers need loans that can be secured on real assets as farmers now need to find new sources of capital to sustain, grow and improve their businesses. Again we can help with asset finance and for equipment and various land and property finance is available too.

Farming Equipment

The government has recognised that “farming requires high levels of investment and the lack of sufficient funding is a major threat to these businesses and their prospects”.


Some of the reasons why a farmer would want access to finance: –

  • Diversification, farmers need capital to diversify and build new businesses. Diversifying your enterprise can increase revenue and reduce risk. We understand this and the benefits it brings in the current market, as our team has direct experience of building new businesses.
  • Purchasing new farmland when additional acreage or a unique property opportunity may come available and often at short notice. Additional acreage or a unique property opportunity may come available at any time and often at short notice. We can move quickly to help you secure this and expand your business.
  • Property finance allows farmers to develop, renovate or repair property for capital appreciation and income generation. Are you making the most from your property? A loan from us could help you develop, renovate or repair property for capital appreciation and income generation.
  • Renewable energy projects can be a great source of additional income and add real value to under-utilised land on a farm, or even turn waste products into revenue. Renewable energy projects can be a great source of additional income and add real value to under-utilised land on your farm, or even turn waste products into revenue.
  • Livestock Finance is utilised by farmers to expand their livestock holdings. Once you decide that you’d like to expand your livestock holdings, our facility can provide a flexible option that can be used repeatedly, allowing you to make judicious purchases or sales, depending on the market.
  • Recovery & Restructure finance is needed when financial pressure is acute and a facility can provide a window to take control and rationally plan. We understand the acute financial pressures farmers face and can help you cope with expected and unexpected demands. Being able to take control and plan rationally is vital – our facilities can provide your window for this.
  • Tenant farmers often have a right to buy their land. If you’re a tenant farmer and have a right to buy your land, we may be able to help with a loan based on the open market value of your land, rather than the actual discounted purchase price.
  • Generational Transfer when farmers who are looking to transfer their farm to the next generation can use a facility to achieve this. Looking to transfer your farm to the next generation, possibly below market value, but wanting to keep some of your capital? One of our loans might help you achieve this.

The farmers business plan should demonstrate how a loan helps them generate sufficient income or capital to enable them to repay the loan, refinance with the High Street or rolled into a term facility once completed.

Agricultural loans, while overlooked by many  has recently got more attention given the size of the opportunity with average bridge loans in the region of £2m and term loans in the region of £500,000.

What do farm loans usually cost?

  • Agricultural bridge finance loans are in the region of 1% a month
  • Term loans which are typically 3-7 years are in the region of 6.5-9%

Rural property and rural businesses is a highly specialist area given the many challenges that farmers face, but don’t forget their appeal.  We look to work and build relationships with specialist lending teams that understand business lending against agricultural land where a ‘one size fits all’ doesn’t work. It’s important to work with lenders who work with the leading experts in agricultural valuation, security and restructuring to ensure swift informed and fair decisions and face to face underwriting.

Finding a lender who lends against the agricultural sector is key given the complexities of the sector and the need to move swiftly to provide financing and the ability to adapt a loan to suit the borrower’s circumstances.

We are all about a fair deal for borrowers who want quick, simple and flexible agricultural finance;

Find out more by emailing us at or Telephone 0191 268 2157.