I have been helping farmers arrange long term finance for projects for some time. When I look back at the comparisons from initial offers to the eventual final chosen offer the variance in price has amazed me. The first deal completed quickly and saved the client at least £11,874. One of the more recent deals was £251,629 cheaper over the term than their own bank.

Whilst the most recent cases have mostly been completed by telephone and video calls, it has been much easier than I anticipated. Covid-19 has caused many issues, but it has taught me how you can manage to work with farmers on a remote basis.

The last client told me he had learnt many things about farm finance, he was totally unaware of before he spoke to me. The different rates, conditions, covenants, costs, early repayment conditions the margin guarantee, what happens when the fixed rate expires and security required, are all questions to be considered and tailored to the individual client requirements.

I have presented cases to all the major lenders and their offers vary considerably. What may appear to be cheap might not be the best offer. Something over 10 years may appear very affordable but what if the land next door which you have hoped to buy suddenly comes to the market? Those rapid repayments might not be the best way to have gone about structuring that existing loan.

All in all, the original finance request from what the farmer thought was needed invariably changes. The amount, the term, the security used, and the lender are just some of the issues.

I have over 20 years’ experience arranging finance with farms and estates. If you would like any help or advice, please contact Ed in confidence for an initial no obligation chat by requesting a call back at edwarren@fcgagric.com . As a broker, if the deal concludes with the finance drawdown then my fees are paid by the lender. So, you get a very cost effective independent service, saving you a lot of time to do what you do best with the knowledge that you have got the finance package suited to your needs.

Midwest Consulting Limited is regulated by the Financial Conduct Authority and is a registered credit broker FRN793780. We are members of the NACFB.