Climate pressures, rising energy costs, and changing consumer expectations are reshaping how farms operate. For many farmers, the question is no longer whether to adopt greener practices but how to fund the equipment needed to make that transition without disrupting seasonal cash flow.

This is where sustainable equipment financing becomes essential. From energy-efficient machinery to precision irrigation systems, the right tools can reduce operating costs and improve long-term competitiveness. But purchasing this equipment outright can put considerable strain on a farm’s finances, particularly during quieter trading periods.

Rural Asset Finance works with farmers to structure funding solutions that align with seasonal income, helping to bring sustainable machinery within reach without compromising day-to-day operations. This blog explores why sustainability matters in modern farming, the types of green projects farmers are investing in, and how Agricultural Machinery Finance can support these investments.

Why does sustainability matter in modern farming?

Environmental pressures and climate change are pushing farms of all sizes to adopt greener practices. Regulatory expectations are tightening, and buyers across the supply chain increasingly favour suppliers who can demonstrate reduced environmental impact.

Beyond compliance, sustainable practices deliver tangible business benefits. Farms that invest in energy-efficient equipment often see improved operational efficiency, lower running costs, and stronger positioning in a market that increasingly values environmental credentials.

Examples of machinery well suited to asset finance include:

• Electric or hybrid tractors
• Energy-efficient feed systems
• Precision irrigation pumps
• Water-saving machinery for crop management

Timing matters here too. Autumn and winter are often ideal for planning energy-efficient equipment upgrades ahead of the next growing season, while summer tends to bring renewed focus on irrigation machinery and field-based renewable equipment.

What green energy projects are farmers investing in?

Sustainability projects don’t need to mean overhauling an entire operation. Many farmers are making targeted investments in machinery and tools that support greener practices while keeping cashflow intact.

Common categories include:

• Energy-efficient machinery: electric or hybrid tractors, LED lighting for barns, and precision irrigation systems.
• Renewable energy equipment: such as solar panels, biomass, anaerobic digestion machinery, and hydro systems
• Water and resource management equipment: water-saving irrigation systems and composting or recycling equipment.
• Operational tools for sustainable practices: Technology for sustainable practices: Including GPS-guided sprayers and low-emission fuel systems.

But Rural Asset Finance doesn’t just fund green projects; we finance equipment, machinery, vehicles, buildings, and land. Whether it’s traditional food production or a diversification project to open up a new revenue stream, if it’s connected to your farm business, we can help.

Want help weighing up which projects to prioritise? Our Knowledge Base tells you more about how to plan your next steps.

How does asset finance support sustainable farming?

Rural Asset Finance helps farmers acquire the machinery and equipment needed for green initiatives without placing undue pressure on working capital. There are several routes to consider, each suited to different circumstances:

• Hire Purchase: Spreads the cost of sustainable machinery over an agreed term, allowing ownership at the end of the agreement. Our Agricultural Equipment Hire Purchase service is designed specifically for this purpose.
• Leasing: Offers short- or medium-term access to energy-efficient machinery, giving farmers the flexibility to evaluate return on investment before committing further. Details are available through our Agricultural Equipment Leasing service.
• Asset Refinancing: Unlocks capital tied up in existing farm assets, which can then be redirected towards machinery upgrades. Our Asset Refinancing solutions are tailored to individual farm circumstances.
• Tailored Advice: Our advisers work closely with farmers to design finance solutions that reflect seasonal cash flow patterns and any relevant government incentives.

Choose hire purchase if long-term ownership matters most to you. Leasing tends to suit farmers who want to test new technology before fully committing, while asset refinancing is often the preferred route for those looking to fund upgrades without taking on new borrowing.

How can government incentives support seasonal equipment planning?

A range of grants, subsidies and tax incentives exist to support farmers investing in sustainable equipment. These schemes can significantly reduce the upfront cost of machinery, but they often come with specific application windows and eligibility criteria.

Timing equipment purchases to coincide with these incentives, and with quieter periods in the farming calendar, can maximise the financial benefit. Rural Asset Finance advisers can help align financing arrangements with grant application timelines, reducing the amount of capital a farm needs to commit upfront. This coordinated approach means farmers aren’t left covering the full cost of equipment while waiting for incentive payments to come through.

How should farmers budget for green projects?

Careful budgeting is essential when planning sustainability investments. A few practical principles can help:

• Prioritise high-ROI equipment that either reduces operating costs or increases efficiency, such as precision irrigation or energy-efficient feed systems.
• Factor in seasonal cash flow, particularly around peak energy or operational usage periods, to avoid repayment pressure during leaner months.
• Use planning tools and advisory support, such as our Finance Calculator, to model repayments alongside existing operational costs.

Getting this balance right from the outset makes it far easier to sustain green investments over the long term, rather than treating them as one-off purchases.

FAQs: Financing Sustainability on Farms

Can I finance renewable energy and machinery simultaneously?

Yes. Many farmers combine funding for renewable energy-linked equipment, such as anaerobic digestion machinery, with financing for other energy-efficient tools, provided each falls within the scope of equipment and machinery finance.

Are repayments flexible to match seasonal farm income?

Yes. Rural Asset Finance structures repayment schedules around the realities of farm cash flow, rather than applying a fixed template regardless of seasonal income variation.

How does Rural Asset Finance work with government grants or incentives?

Our advisers help farmers align finance agreements with grant application timelines, which can reduce the amount of upfront capital required for equipment purchases.

Which green projects offer the fastest return on investment?

This varies by farm, but equipment that directly reduces energy or resource costs, such as precision irrigation systems or energy-efficient feed systems,

often delivers noticeable savings relatively quickly.

Plan your next sustainable investment with confidence

Sustainable farming doesn’t need to come at the cost of financial stability. With the right finance structure in place, whether that’s hire purchase, leasing, or asset refinancing, farmers can invest in energy-efficient and resource-saving machinery while keeping cashflow firmly under control.

Contact our advisers today to explore which financing route best suits your green energy projects, and start planning equipment upgrades ahead of your next peak season.

The post Sustainability and Green Energy Finance for Modern Farms appeared first on Rural Asset Finance.

Congratulations from all of us at Rural Asset Finance to N D Harper, who was this week named Contractor Of The Year at the Farmer’s Weekly Awards!

We were delighted to sponsor the category and Nigel’s brilliant business near Congleton in Cheshire made him a worthy winner as he received the trophy from our CEO Matthew Smart.

It was as always a brilliant evening at the Grosvenor House Hotel in London’s Park Lane, with an excellent host in Colin Murray and a fantastic performance from the Hawkstone Farmers’ Choir.

“Congratulations to Nigel and his team at Cloud Hill Farm, who thoroughly deserved the award,” said Matthew. “Congratulations, too, not just to the runners-up, Dean Farming and Horsleys of Abbeytown, but all the winners and nominees in every single categories.

Rural Asset Finance CEO Matthew Smart (centre), with awards host Colin Murray (left) and Andrew Meredith from Farmer’s Weekly (right)

“We’re immensely proud to sponsor the Farmer’s Weekly Awards. They not only give farmers a well-deserved night out in wonderful surroundings – more importantly this event showcases and publicises the outstanding job all farmers and contractors do all year round.

“We’re honoured to be associated with an event that recognises the whole UK farming community for their consistently outstanding commitment to putting food on the nation’s tables.”

The post That winning feeling! appeared first on Rural Asset Finance.

Autumn marks a pivotal moment in the farming calendar. The harvest is in, but as all farmers know, the financial pressure doesn’t ease; it shifts. Crop sales may take time to clear, overheads remain high, and the costs of winter preparation start stacking up quickly. For many farm businesses across the UK, this is the season where sound financial planning makes the difference between a resilient operation and a strained one.

Post-harvest planning isn’t just about reviewing what’s been spent. It’s about making clear, deliberate decisions on what to fund, what to defer, and how to protect cash-flow through the quieter winter months. Getting this right sets the foundation for a strong start to the next planting cycle.

Why post-harvest planning is crucial for farming businesses

Farms operate on seasonal income, but costs arrive year-round. Autumn brings a particular challenge: revenue from crop sales is often delayed while expenditure on winter preparation, equipment servicing, and input purchasing accelerates.

Without a structured approach to post-harvest financial planning, it’s easy to find cash-flow stretched at exactly the wrong moment. Effective planning helps farm businesses:

• Identify and avoid cash-flow gaps before they become critical and affect your farm finances

• Prioritise investment decisions based on operational impact and the value they bring to your business

• Prepare fully for winter and position the business for early spring activity, so you’re ready for the Spring

This is where working with a specialist lender such as Rural Asset Finance, which understands the seasonal nature of farming, becomes genuinely valuable.

Key post-harvest costs to consider

Understanding where money needs to go in autumn is the starting point for any meaningful plan. It’s a good idea to consider:

Machinery and equipment upgrades

Think about your vehicles and machines – tractors, combines, trailers, drills, balers – and your technology: What’s working, what needs maintaining, and what needs replacing? Now’s an ideal time to take stock and see where you might need to invest in the coming year.

Repairs and maintenance

Autumn is an excellent time to get those vehicles and machines serviced for the coming year. It’s also worth taking the time to look around your farm to spot any buildings in need of urgent maintenance. Addressing these issues now can prevent costly problems further down the line.

Feed, fertiliser and seeds

These can often be cheaper in the autumn, before increased demand over winter pushes the prices up. Being organised and shopping around could save you a lot of money. Buying in advance also means you can make sure you have everything you need for the months ahead, helping you avoid last-minute purchases when prices may be higher.

Energy and storage costs

Grain storage, silo maintenance, heating systems, and fuel costs all increase as temperatures drop. These expenses are difficult to reduce but can be managed more effectively with the right financing structure in place.

Diversification and Expansion Projects

Many farm businesses are actively exploring income diversification, from renewable energy installations to farm shops, glamping, and agro-tourism. Autumn can be an effective time to initiate or progress these projects, ahead of the spring and summer seasons when return on investment is strongest.

How Rural Asset Finance supports post-harvest planning

Rural Asset Finance provides direct lending solutions tailored specifically to farm businesses and rural enterprises. Rather than applying a generic commercial finance model, the team draws on over 100 years of combined agricultural experience to understand how farms actually work; seasonally, operationally, and financially.

There are several key finance options that are particularly relevant at this time of year:

• Hire Purchase: Spread the cost of new or used machinery and equipment over a fixed term, preserving post-harvest cash while still making essential upgrades. Fixed repayments mean budgeting is straightforward.
• Agricultural Equipment Leasing: Leasing provides access to equipment for a defined period without the full capital outlay of ownership. This can be particularly useful for winter-specific tasks or early spring preparation where short-term access is sufficient.
• Asset Refinancing: If cash-flow is tight following harvest, refinancing existing assets can unlock working capital to cover operational costs, urgent repairs, or input purchasing. This approach allows the business to act without waiting for crop sale revenue to clear.

Tailored Repayment Structures: Rural Asset Finance advisers work with each farm business individually to align repayment schedules with seasonal income patterns. For businesses with delayed or variable income, this can significantly reduce financial pressure across the quieter months.

Creating a post-harvest budget that works

A practical post-harvest budget doesn’t need to be complicated, but it does need to be realistic. Here’s a straightforward approach:

1. List all anticipated costs for winter and early spring, including machinery, maintenance, inputs, and storage
2. Separate capital costs from operational costs: Equipment and significant repairs are well-suited to finance; day-to-day running costs typically are not
3. Identify which costs can be spread via finance to protect cash-flow without deferring essential work
4. Use the Rural Asset Finance calculator to model repayment options against your seasonal income cycle
5. Prioritise investments by operational impact: Focus first on what directly affects the efficiency and resilience of the business

Taking this structured approach makes it far easier to have clear conversations with lenders and arrive at a finance arrangement that genuinely fits your situation.

Plan ahead and protect your business this Autumn

Post-harvest is not the time to put financial planning on hold. The decisions made in autumn have a direct bearing on how well a farm

business navigates winter and enters the next season. Acting early, with clarity on costs and a clear plan for funding them, puts the business in a far stronger

position.

Rural Asset Finance specialises in supporting farm businesses through exactly these decisions. From hire purchase and leasing to asset refinancing, the team offers direct lending with repayment structures built around the realities of agricultural income.

Explore hire purchase, leasing, and asset refinancing for post-harvest planning.

Frequently asked questions: Autumn financial planning for farms

Can I finance both machinery and operational costs at the same time?

Yes. Rural Asset Finance can structure arrangements that address both capital investment, such as equipment hire purchase, and operational needs through secured business loans or asset refinancing. Each solution is tailored to the individual farm business.

How flexible are seasonal repayment schedules?

Rural Asset Finance works with each customer to align repayment terms with their income cycle. For farm businesses with delayed crop sale revenue or seasonal income patterns, repayment structures can be arranged accordingly.

Can Rural Asset Finance help if crop sales are delayed or markets are volatile?

Yes. Asset refinancing in particular is designed to release capital from existing assets when cash-flow is under pressure. This means businesses do not have to wait for crop income to clear before addressing urgent costs.

What costs should I prioritise for winter preparation?

Machinery repairs, feed and input purchasing, and energy and storage costs are typically the most time-sensitive. Equipment upgrades that affect operational efficiency are also worth addressing before the ground hardens and activity increases again in spring.

For further information, visit the Rural Asset Finance FAQs page.

The post Post-Harvest Financial Planning: What to Fund This Autumn appeared first on Rural Asset Finance.

Caroline’s Rural Business Hub building refurbishment was financed by Rural Asset Finance

Farms often have unused spaces that can be converted to bring local people together – and give farmers an extra revenue stream.

Caroline Reeves set up a business that helps farmers do just that. Along the way, she discovered there’s a smart way of financing that protects cash flow.

“There are so many rural properties with spaces that could be converted or utilised to help people interact,” she says. “Creating spaces for co-working that are also flexible enough for, say, yoga classes or parent-child groups has a huge positive impact on communities.”

Caroline wanted to expand the space in her premises. She found the perfect funding solution from specialist agri-lender Rural Asset Finance, whose team have all lived on or run farms themselves. “They just ‘got it’,” she says. “People in rural communities, farmers, agricultural firms, other rural businesses, we all speak the same language – and so do Rural Asset Finance.”

Caroline got the idea for her business 10 years ago when she was a farm secretary who wanted somewhere “more professional” to meet clients. She bought and fitted out an old village shop. A decade on, the Rural Business Hub is building a new extension to connect the shop with some existing glamping pod offices so she can run workshops and courses to help farmers convert their own buildings.

Rural Asset Finance, she says, was the perfect partner – and is ideal for farmers wanting to finance their own projects. “There was just an instant connection,” she says. “We had tried to finance this through a bank but the loan-to-value of a commercial building was too high – and they could not see what we wanted to achieve. Rural Asset Finance understand rural communities and rural businesses and how they work.”

The premises before RAF financed its conversion

Rural Asset Finance’s head of sales Ben Wood worked with Caroline on an alternative to her existing loan that would enable her to grow the business while maintaining cash flow. “We met at her premises, which she offered as security, and this immediately showed Caroline’s business plan was suitable,” says Ben. “We looked at her existing facility, worked out what additional funds she would need, and we agreed a plan that would consolidate her previous loan and enable her to borrow more – all the while implementing her growth strategy while not adding any cashflow stress to her business.”

Caroline was delighted with the outcome. “I have never had such a smooth transition with funds as I had with Rural Asset Finance,” she says. “I saw they were part of the British Business Bank so they were underwritten by the government, which was immediately reassuring. Ben saw the vision and their solicitor Andrew (Carrier) was so efficient. I really welcomed all those conversations – they were professional but also informal and friendly, which is how things should be in a rural community.”

A key benefit was protecting her cashflow. “I managed to get a Rural Business Enterprise and Community Grant, but I had pay for everything up front so Rural Asset Finance’s loan enabled me to pay for my meeting room, the glass panelling, the kitting out, and then I’ll be able to draw down the grant which will release cash back up into reactivating some lapsed planning consent to we can start work on the extension.”

With Rural Asset Finance’s money, Caroline created what she calls a “blueprint” for others to follow at that former shop, The Old Post Office in the village of Hurstbourne Tarrant in Hampshire. “I want to show people this is what you can do if you’ve got vacant space on your farms or other rural businesses. We’ve got our space, but we’re also teaming up with the pub, which is allowing us to use one of their rooms. It’s enabling the community to come together – we can advise and show people how to use their own spaces to maximise that earning potential.”

For farmers who want to convert spaces, financing projects can be straightforward. Caroline says: “It’s so refreshing to find Rural Asset Finance, a lender that really, 100% understood exactly how we operated and what we wanted to do, that speaks the language of farmers and rural communities and is committed to supporting them. They got it, they got me – so they got the business.”

Rural Asset Finance offers loans and other bespoke finance packages secured on land and buildings, often in combination with equipment finance also on fixed-term, fixed-rate hire purchase or lease – while using existing assets as security and protecting your cashflow. To see how Rural Asset Finance can help you, visit ruralassetfinance.com

The post Caroline’s reaching to the converted! appeared first on Rural Asset Finance.

We were delighted to welcome Clarkson’s Farm star Kaleb Cooper when he popped into our stand at Cereals 2026!

Jeremy Clarkson’s farm manager dropped by for a chat with our head of sales Ben Wood at the two-day event on Diddly Squat farm.

But Kaleb wasn’t the only contractor to visit us. Our marquee was a hub of activity throughout the two days, with our agri-finance lunchtime discussions and free refreshment – A Pie, A Pint And A Panel – proving hugely popular!

“As a specialist agri-lender with first-hand experience of running and working on farms, it was a great opportunity for us to meet old friends and make new ones,” says Ben.

“We were also able to showcase how innovative, flexible, customer-focused finance can help Britain’s farmers to expand their businesses while protecting their cash-flow.”
The lunchtime panels, co-hosted with the National Association of Agricultural Contractors, asked the question “Is using a contractor better value than you might think?” Discussing the topic were a number of industry professionals including NAAC chairman James Alexander, farmer and Wardys Waffle YouTube star Andrew Ward, Phil Judge of transportation and hay and straw merchants Philip Judge International, SCI scheme manager Georgina Websdale, Michael Kavanagh of The Green Farm Collective and Joe Hampsey, operations director at JSE Systems Ltd and Timothy Russon of agricultural machinery contractors P Russon and Sons.

“They were two fascinating discussions, bringing lots of different perspectives,” says Ben. “We’re delighted to have been able to facilitate them and welcome so many farmers to our stand. Hopefully it has encouraged people to see just how vital contractors are to the industry, and how much value they can bring to individual farms.”

The post A Pie And A Pint – and Kaleb calls in! appeared first on Rural Asset Finance.

CONTRACTORS are a vital part of British farming – which is why we are sponsoring a special event celebrating them at Jeremy Clarkson’s Diddly Squat Farm.

Rural Asset Finance is sponsoring the Contractors Zone and hosting Pies, Pints And A Panel at this year’s Cereals: The Arable Event, in which three experts each day will talk about the value that contractors can offer and answer questions from show visitors.

And, as the name of the session suggests, the audience can listen to their contributions while enjoying FREE food and drink courtesy of Rural Asset Finance!

“We’re delighted to be sponsoring Pies, Pints And A Panel and the Contractors Zone at Cereals” says our head of sales Ben Wood.

“Contractors are in many ways the backbone of British agriculture. Our nation’s farmers are the best in the world – brilliant, hard-working and resourceful in putting food on our tables. But in many ways the contractors who support them are the glue that holds the whole industry together.”

The panel, including contractors Tim Russon from P Russon & Sons, Nik Johnson and Joe Hampsey from JSE Systems, Andrew Ward, farmer and star of YouTube channel WardysWaffle, will be discussing issues including the merits of using a contractor rather than doing a job yourself, how farmers and contractors work in partnership and how such an arrangement can boost both profit and productivity for both parties.

Visitors to the informal panel discussion, which we’re hosting with the National Association of Agricultural Contractors (NAAC) and takes place at stand 507 from 1-1.30pm on both show days, can listen and ask questions while tucking into a fine selection of complimentary freshly cooked pies and pasties – washed down with a choice of drinks including Hawkstone beer.

“We’re delighted to be sponsoring the event,” says Ben. “It’s a brilliant opportunity to celebrate contractors, but as we’ve all come from farming families ourselves, we’re really looking forward to seeing old friends and making some new ones!”

The show at Clarkson’s farm near Chipping Norton, Oxfordshire, will also feature stands, exhibitions and working demonstrations as part of the Contractors Zone, including field drainage demonstrations organised by NAAC.

“Cereals is always a great event,” says Ben. “There’s always so much to see and do, but the panel discussion should be entertaining and informative and hopefully help people to understand more about contractors and what a brilliant support they can be for farmers. So make sure you pop along to our stand – we look forward to seeing you for a pie and a pint!”

The post Championing contractors at Cereals 26! appeared first on Rural Asset Finance.

CONTRACTORS are a vital part of British farming – which is why we’re sponsoring a special event celebrating them at Jeremy Clarkson’s Diddly Squat Farm.

The specialist agri-lender is sponsoring the Contractors Zone and hosting Pies, Pints And A Panel at this year’s Cereals: The Arable Event, in which three experts each day will talk about the value that contractors can offer and answer questions from show visitors.

And, as the name of the session suggests, the audience can listen to their contributions while enjoying FREE food and drink courtesy of Rural Asset Finance!

“We’re delighted to be sponsoring Pies, Pints And A Panel and the Contractors Zone at Cereals” says Ben Wood, head of sales at Rural Asset Finance, which is hosting the event with the National Association of Agricultural Contractors (NAAC).

“Contractors are in many ways the backbone of British agriculture. Our nation’s farmers are the best in the world – brilliant, hard-working and resourceful in putting food on our tables. But in many ways the contractors who support them are the glue that holds the whole industry together.”

The panel, including contractors Tim Russon from P Russon & Sons, Nik Johnson and Joe Hampsey from JSE Systems, Andrew Ward, farmer and star of YouTube channel WardysWaffle and other names to be confirmed will be discussing issues including the merits of using a contractor rather than doing a job yourself, how farmers and contractors work in partnership and how such an arrangement can boost both profit and productivity for both parties.

Visitors to the informal panel discussion, which takes place at stand 507 from 1-1.30pm on both show days, can listen and ask questions while tucking into a fine selection of complimentary freshly cooked pies and pasties – washed down with a choice of drinks including Hawkstone beer.

“We’re delighted to be sponsoring the event,” says Ben, who with his colleagues at Rural Asset Finance arranges bespoke, flexible finance deals for contractors, farmers and other rural businesses, helping them invest in everything from vehicles, machinery and technology to buildings, land, diversification projects and renewable energy – and much more. “It’s a brilliant opportunity to celebrate contractors, but as we’ve all come from farming families ourselves, we’re really looking forward to seeing old friends and making some new ones!”

The show at Clarkson’s farm near Chipping Norton, Oxfordshire, will also feature stands, exhibitions and working demonstrations as part of the Contractors Zone, including field drainage demonstrations organised by NAAC.

“Cereals is always a great event,” says Ben. “There’s always so much to see and do, but the panel discussion should be entertaining and informative and hopefully help people to understand more about contractors and what a brilliant support they can be for farmers. So make sure you pop along to our stand – we look forward to seeing you for a pie and a pint!”

The post Join us at Cereals for a Pie, Pints and a Panel! appeared first on Rural Asset Finance.

SDAW26-LOGO-WIN-MASTER

‘First-of-its-kind’ RAF deal named Environmental Finance’s top transaction

RURAL Asset Finance’s £120million deal with NatWest and the British Business Bank has been named Environmental Finance’s Sustainability-Linked Loan Of The Year!

The online news and analysis service, which focuses on developments in sustainable finance, named our agreement with NatWest Bank, BCI Capital and the British Business Bank the category’s standout transaction in its recent Sustainable Investment Awards.

Environmental Finance noted that the sustainability-linked loan provided to us was a “first-of-its-kind” transaction designed “to help farmers access finance whilst also scaling up sustainable practices within their existing businesses”.

Last summer we became only the 13th delivery partner and lender in over 10 years to be approved for the state-owned British Business Bank’s ENABLE Guarantee Scheme, set up to help smaller businesses access fair finance by providing specialist lenders with a government-backed guarantee.

Judges were particularly impressed that our agreement has a dynamic loan margin linked to the success of specific on-farm sustainability key performance indicators, including expanding renewable energy installations and adopting sustainable land, water and environmental management practices.

As importantly for us, the £120m deal has enabled us to help even more farmers needing money to enhance or add value to their UK food production, or diversify into alternative revenue streams.

The post RAF wins Sustainability-Linked Loan of the Year! appeared first on Rural Asset Finance.

WHEN Ed Stormes needed a new sprayer, he wanted a lender who would understand exactly why it was so important, and the huge difference it would make to his business. He wanted someone who properly understood farm contracting. Fortunately, he knew exactly who to call.

“Ben gets exactly what you’re trying to do, he understands what you’re buying and why you’re buying it,” he says. “He sees the practicalities of what you’re doing, how that purchase will work in practice. He understands how the business works.”

There’s a reason for that. At Rural Asset Finance, every member of the team have all worked on or grown up on farms and therefore, yes, understand exactly what their customers are talking about.

“They’re not like other lenders who just look at the accounts and the bottom line,” says Ed, owner of EDS Agricultural Contracting in south Yorkshire. “Ben knows the kit, he understands how it will be used, why it will make so much difference to the way we work and the future savings – things that are just not shown in the historic accounts.”

Over the past two years Ed has used Rural Asset Finance’s help to buy a nine-tonne digger, a 250hp tractor, a 14-tonne excavator and, more recently, a 36-metre self-propelled, Agrifac Condor 4 sprayer. “I say to Ben, ‘this is what I want to buy and this is how much it is, and he comes back every time with exactly what we want.’”

Using Rural Asset Finance means Ed is dealing direct with a lender, rather than through intermediaries . “Previously I’d have to explain everything to the broker, who’d then have to explain it all again and give my information to all to the lenders” he says. “Because of Ben’s background and the company’ specialism, he just gets it, which makes it so much quicker. When I want a new piece of kit I pick up the phone to Ben and within two to three days it’s all sorted.

“I don’t even bother with brokers anymore. For a while I did still use them to benchmark Ben’s pricing and solutions, but Rural Asset Finance always beat them on price anyway and my personal information stays in one place.”

Ed’s latest purchase will make his business much more efficient. “With our old 4,000-litre sprayer we used to run a bowser with it 75% of the time. The new one is 5,000 litres but with pulse-width modulation, so we can regulate the flow so it feels like 6,000 litres. Not only is it more efficient getting round, but it also means we use the bowser maybe only 30% of the time. That means we don’t need to be paying someone to drive a tractor pulling the bowser and can send that tractor off on other jobs.”

But Rural Asset Finance’s farming experience means they don’t just understand about the machinery. “They know the calendar, they know how spraying works,” says Ed. “So we do bi-annual payments, one in December when we’ve been paid for the winter spraying, and one in July when we’ve been paid for the spring. The last thing we need is big payments going out in March/April when our sprayers have been parked up for three months. But Ben already knows that, so he has worked out a payment plan that works for us and looks after our cash-flow.”

Ben says he’s delighted Rural Asset Finance could help. “We do know the challenges of running an agricultural business, and how important it is to protect cash-flow,” he says. “Ed runs a great business, and we’re really happy to be able to support him in whichever direction the business goes next.”

Meanwhile, Ed is so pleased with the finance support that he’s regularly recommending Ben Wood and the team at Rural Asset Finance to his agricultural contacts. “I’ve passed on their number to a few people,” he says. “It’s great to deal with someone who really understands your business and speaks your language.”

The post An agri-lender who speaks your language! appeared first on Rural Asset Finance.

So you want to diversify – but how? Where can you find that extra revenue stream and, crucially, how do you go about making it work?

“Diversification is increasingly vital for Britain’s farmers,” says Ben Wood, head of sales at specialist agri-lender Rural Asset Finance. “It used to be handy extra income – now it’s often critical to shore up a farm’s future into the next generations.”

So whether it’s a farm shop, food processing facilities, fishing lake, holiday lets, renewable energy or anything else – how do you ensure your diversification achieves the income you need? Here are Ben’s top tips:

1 Use your farm and its location to its advantage

“Choose something that suits where you are,” says Ben. “For instance, shepherd’s huts will be much more lucrative in a scenic area that already has a high tourist footfall.

“A farm shop is great if you know you’ll get customers, but not if you’re really off the beaten track and there’s absolutely no passing trade. Think about what will work where you are.”

2 Be flexible with your plans

If your first choice diversification will obviously not work, adapt your plans. “If the farmer next door rents out top-of-the-range luxury accommodation really cheaply, you’ll struggle to match that,” says Ben. “So rather than trying to compete, think about a business that complements your neighbour’s – such as a farm shop that offers them breakfast, or an ice-cream parlour.”

3 Check planning rules and other restrictions

Most major diversifications require some form of local authority approval – so do your homework to ensure you know what permission you need.

For instance, you need full planning permission for new builds – but often not for converting existing agricultural buildings. Permitted Development Rights often negate the need for full permission – but be mindful you still need “prior” approval from local councils around potential noise and traffic issues.

A modern barn conversion

“It’s best to contact the planning department early so you can understand the permissions you’ll need,” says Ben. “It’s a good idea to sound out your neighbours, too!”

4 Work out a solid business plan

An effective, well-thought-out business plan is essential to secure funding from a lender. “Ultimately lenders need to know they’ll get their money back!” says Ben. “So it’s a very good idea to draw up a good business plan. Getting a professional to plan your forecasts and budgets can mean the difference between making and breaking a business.”

5 Find the right lender

“The best lenders are flexible, build personal relationships, get to know you properly, take a genuine interest in what you’re doing and understand how your farm works – not just on paper, but in day-to-day life,” says Ben. “You want someone who will come out and visualise the project with you.

“At Rural Asset Finance we all have a farming background so understand the day-to-day challenges. We help them shape their diversification plan into something that works. We know what will fit with credit and what will be affordable, and when, and organise payments that work for everyone. Scheduling repayments in December for a shepherd’s hut business is no good for them or for us!

“We are with them every step of the way. We want the farmer’s diversification to work, abut not just from a business viewpoint. We have farming in our blood , so we’re really thrilled personally when we see a diversification succeed.”

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