Farm finance

According to the Department for Environment, Food & Rural Affairs the total income for farming in 2022 was £7.9 billion, an increase in 17% when compared to 2021. It clearly is a sizeable and incredibly important sector for the UK economy.

Of course, operating in the sector can be challenging. There are so many environmental factors to consider, the weather can play a major role and consumer demand continues to fluctuate. Alongside this there are the issues associated with seasonal payments where for long periods of time the business will have to operate without earning any money. Products take time to grow and animals need to mature.

Running a farm or other similar agriculture business is no easy process. Often it will feel like it is spend, spend, spend. Investment will be needed for upgraded machinery, increasing livestock, purchasing more stock or simply diversifying into new areas. Fortunately, this is where farm finance can be so important. It can be used for a number of purposes:

Equipment & Machinery

• Tractors and power machinery
• Hay making systems
• Harvesting equipment

Soil Cultivation

• Cultivators
• Harrows
• Ploughs
• Rollers

Planting

• Planters
• Seed-counting
• Seed drilling

Irrigation

• Drip irrigation
• Sprinkler systems
• Pivot irrigation

Milking

• Bulk tanks
• Milking machinery
• Milking pipelines

Livestock

• Cows
• Sheep
• Pedigree animals

General Supplies

• Energy
• Feed
• Fertiliser

Aside from items such as equipment, machinery and livestock, at times a farm will also need to look at diversifying. They might consider opening a farm shop, using spare land to set up a Glamping site or even provide a delivery service for their products. Again, farm finance can be used to facilitate all forms of diversification.

Here at NGI Finance, we have broad experience in arranging finance for farms. We have helped to purchase machinery, livestock and set-up seasonal payment plans which are structured to capitalise when income periods are at their maximum. In the last 2 months we have enabled the purchase of a new crop sprayer to the value of £200K and a tractor to the value of £75K.

If you have any questions or need some help with farm finance, please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.