Tag: Rural Fiannce

What are the benefits of Agricultural Finance?

What are the benefits of agricultural finance?

As a farmer, it can be difficult  to purchase the equipment and machinery you need. The costs can be huge and can eat into capital that is much needed for other necessities. You may not be aware, but there is a solution to this in the form of agricultural finance. Outlined below is the importance of agricultural finance.

Farmers need to purchase new inputs, such as seeds, fertilizers, pesticides, irrigation water and more. Agricultural finance can help to make these purchases easier for farmers. If the seed of a high yielding crop is readily available for farmers, then the productivity of the farm is improved.

Smaller farms may not have the need for agricultural finance for items such as seeds or pesticides but larger farms may need help with bulk purchases of these items. Seeds, fertilizers and irrigation water can prove to be a highly expensive continuing need which agricultural finance can help to meet.

You can cover land costs

If you are looking to buy new farmland as a budding farmer or simply increase the amount of land you already have, then agricultural finance can help cover the land costs you may incur. The land you need will depend on the type of farming you are planning on doing.

In order to apply for finance for land, you will need to calculate how much land you need and what kind of land you are looking for. Once you have your loan approved, you will be able to move forward with your endeavour. Buying land with your own money may not be feasible as a start-up farm, which is why finance is a good option.

You are better equipped for a crisis

Farming can be a difficult business. You are never able to predict what will happen to your crops or livestock, and are at the mercy of customers and competitors. Some farming is seasonal, which means you may only earn money during certain times of the year.

An agricultural loan can be used to protect yourself during the various ups and downs of your business. You can also use it for operational costs as well as costs that occur from damages. It is better to be prepared for every eventuality, which is why having agricultural finance is important to all working farms.

A broker with a farming background

Richmond Asset Finance are leading providers of finance to farmers and rural businesses in the North West, Leeds and Yorkshire. We understand and know the needs of the agricultural community and of specialists are here to help.

Unlike many commercial finance brokers and lenders offering finance to farming and rural communities Richmond Asset Finance has a genuine understanding and interest in agriculture, the countryside and rural communities.

Richmond Asset Finance help with Rural Finance including:

  • Livestock finance
    Our livestock experience covers dairy, beef, sheep and poultry. Our facility can be used repeatedly for auction purchases, B&B, heifer replacement or even new infrastructure.
  • Property renovation and repair
    We provide loans to help renovate and repair property assets, which result in capital appreciation or income generation.
  • Recovery and restructure
    We understand the need to take control and rationally plan when financial pressure is acute. Our facility can provide a window to achieve this.
  • Renewable energy
    We have considerable experience in financing AD, hydro, solar and wind power, for construction or operation.
  • Farm Diversification
    We understand the need to create new revenue streams and support all types of business diversification, from holiday lets through to farm shops or new crops.
  • Purchase of land
    We help farmers move quickly to secure land and expand their business, as acreage may come available at any time and often at short notice.

If you have an enquiry regarding rural and agricultural finance, contact us today.