2013-03-06 xml
Access To Finance Vital For UK Farmers

A new agricultural fund has been launched by specialist short-term lender Bridging Finance Limited as land prices continue to increase.

The agricultural fund will be available to farmers looking to expand or buy land from their landlords as well as for those looking to raise funding against existing land they hold in order to inject capital into their business.

Chris Baguley, managing director of Bridging Finance

Chris Baguley, managing director of Bridging Finance

Farmer activity continues to dominate the farmland market as an increasing number of farmers are looking to capitalise on high agricultural commodity prices.

However, with land prices set to continue rising, many farmers fear they may miss out on the opportunity to expand their operations or purchase parcels of land from landlords whilst prices remain affordable.

In response, agricultural lending specialist, Bridging Finance, has committed to a specialist land fund, as many farmers are unable to source funding to finance their development plans.

Chris Baguley, managing director of Bridging Finance, said:

“Average farmland values in England rose by almost three per cent in 2012 to £6,214 per acre according to a recent report from Knight Frank*. Over the past ten years, land prices have increased by more than 200 per cent.

“Despite the recent steep price increases, farmland values have the potential to appreciate by a further five per cent in 2013 alone and the rising price of agricultural commodities, fuelled by recent poor harvests and growing demand, means many farmers are looking to make long-term development decisions before land prices become prohibitive.

“However, farmland financing is traditionally difficult to obtain, whether for expansion or diversification. In a bid to stimulate the market and assist farmers with their purchases, we have committed to a specialist farmland fund and have made up to 100 per cent funding available on land with or without planning restrictions or agricultural restrictions.”

Manchester-based Bridging Finance has many years of experience in financing farmland deals and its understanding of the market means it is often better placed to make finance available where traditional banks and loan companies may refuse.

Chris added: “The continuing surge in farmland values means many hard-working farmers looking to expand need to do so quickly.

“The lack of finance means viable purchases are often unable to complete. Therefore, we have developed bridging loans to farmers which can be available within 48 hours in a bid to support UK agricultural development.”

The Bridging Finance agricultural finance fund also offers short term funding for investments such as new machinery, livestock or building work.

*Land value figures sourced from Knight Frank Residential Farmland Index Q4 2012 - http://my.knightfrank.co.uk/research-reports/english-farmland-index.aspx

Bridging Finance

   
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