Case Study: Sowing the Seeds of Success – Finance for Farm in South Devon

The Challenge

The client, a farm tenant in South Devon, faced a critical financial challenge characterised by reliance on high-interest finance agreements. As tenant farmers, they navigated unique risks associated with not owning the land they farmed. The unpredictable nature of agricultural income - affected by weather, market prices, and yield, meant their earnings were inconsistent. This instability led them to depend on expensive financing options that strained their operational cash flow.

Securing competitive finance for farms can be especially difficult for farm tenants, as they often lack equity in land. In this case, lender confidence had waned due to the client's status as a tenant, making them feel that favourable financing would remain out of reach. Costly existing arrangements limited their ability to upgrade essential equipment, stifling growth and hindering productivity.

Our Solution

Understanding the complexities of their financial situation, we developed a multi-faceted finance for farms strategy tailored to their goals. Our approach began with a detailed review of their financial health and business model. It became clear that a hire purchase agreement would be the most suitable method to fund critical agricultural equipment - enabling acquisition without requiring substantial upfront payments.

Alongside securing new machinery, we helped them refinance existing assets, releasing equity to fund further purchases. This allowed them to replace outdated tools at more competitive interest rates, improving both productivity and cost-efficiency. We partnered with lenders familiar with farm tenant challenges, securing flexible terms and seasonal payment plans aligned with agricultural cash flow cycles.

The Result

The impact of the new farm finance package was transformative. Expanding their equipment fleet allowed the client to significantly boost crop yields, while the modern machinery introduced greater efficiency and reduced downtime. Importantly, by minimising the need for large deposits, the client was able to reinvest working capital into high-input costs such as seed and fertiliser, vital for seasonal production.

This tailored finance approach for a farm tenant helped stabilise the business, providing the flexibility needed to plan and grow. Improved cash flow enabled the team to operate more confidently and sustainably across future seasons.

What began as a finance request has developed into a long-term advisory relationship. We now act as a key sounding board for their financial planning, and they continue to reach out for advice on strategic growth.