Running a farm is very different from running another type of business. Agricultural businesses require a large amount of land, a lot of expensive machinery and numerous vehicles. Furthermore, farming funding is under question after Brexit, along with international trade, so farmers know the road ahead will be rocky. To keep afloat, more and more farmers are turning to agricultural finance as a means of staying in business.
Because of the fundamental differences between commercial businesses and agricultural businesses, it makes sense that the finance market offers different funding options for farmers. After all, a farm is usually more than a business and a livelihood – it’s a home. Farmers face a multitude of challenges today, but there are many agricultural finance experts like Genie Lending to lend a hand. Here are the specific types of agricultural finance available.
If you don’t have the cash upfront available to invest in important farming assets, you can spread the cost over an agreed period with asset finance. Use this type of funding to buy or replace milking equipment, forestry machinery or any other apparatus with a big upfront cost.
Land and Property Development Finance
If you need to renovate farm buildings or build something new, a finance broker can help. Apply for a commercial mortgage to develop your land or existing property. There is also Project Finance which you could use for barn conversions or a farm shop to try and boost revenue.
Green Energy Projects Finance
You might see potential for more income with a green energy project. Use this type of finance to develop a wind farm, solar farm or anaerobic digestion plant.
Farming requires specialist vehicles, and if they need replacing they can be extremely expensive. Vehicle finance can help farmers acquire tractors, feed mixers and combine harvesters if they can’t afford the full amount. You can choose between hire purchase and lease agreements.
One of the most important assets of the majority of farms is livestock. If you need more animals to produce your products then you can apply for livestock finance which can be used to invest in pigs, sheep, poultry, dairy and beef.
Whether it’s a new farming projects or you just need a little help to get you through a tough season, agricultural finance can help. Give us a call to speak to an agricultural finance specialist today.