At UK Agricultural Finance, we strongly believe in supporting farmers to invest in their agricultural business with farm loans. Many established farm businesses that have been in the family for a long time will require some form of restructuring, and this may require restructuring finance.

UK Agricultural Finance were approached by a family dairy partnership that have been trading for over 115 years. In the case of this dairy farm, restructuring would not only provide improved business structure, but also bring in new productivity improvements and the use of innovative technology.

When we started UK Agricultural Finance, we focused predominantly on pure agricultural loans, such as loans for agricultural properties and the purchase of agricultural land. We now offer loans for a full range of business purposes as long as they have an agricultural connection, alongside our simple land purchase loans.

Agricultural land loans are often not as simple as they may seem on paper, and our personal touch with borrowers allows us to fully understand the story and context of a land purchase. This was the case for a recently completed loan in Scotland, managed by our BDM, Louise. In this case, the purpose of the loan is far less interesting than the story of the borrower and his family.

At UK Agricultural Finance, we are seeing increased demand for recovery and restructure finance. This is across various farming sectors but is particularly prevalent in smaller family farms and traditional hill farming operations. 

Increasing pressures on the farming industry and changes to income levels have meant that many farms are losing their next generation to off-farm employment. This, coupled with the ever-increasing average age of farmers, has led many family farms into financial and emotional struggles. The market conditions over the last two years combined with the impact of Covid has put additional pressure on many of these family farms.