Managing rising costs and maintaining cash flow is a persistent challenge for farmers and agricultural businesses. From essential inputs like seeds and fertilisers to advanced technology and property investments, staying competitive often requires significant financial resources. In this article, we outline how agricultural loans can provide the necessary support to cover rising production costs, fund critical operations and invest in opportunities for growth and diversification.
Rising agriculture costs
According to the most recent figures released by Anglia Farmers’ (AF) in their AgInflation Index, the average cost of agricultural production inputs grew by almost 5% in the year from September 2016 to 2017.
Farmers and producers alike have seen some significant increases in purchasing costs of late, translating to a noticeable rise in the overall cost of farming for many. Fuel prices rose by 11.5% in the 12 months leading to September 2017, with additional increases also seen in fertiliser (8.7%) and seed costs (7.3%)
Increases in production costs will inevitably lead to climbing cash flow dependencies and for many businesses finding the additional funds to cover these elevated costs can be a challenge.
At White Oak UK, we can help you cover the rising cost of farming inputs, without harming your cash flow.
What can agriculture loans be used for?
Farming inputs – such as seeds, fertilisers, labour and utilities – are not the only use of agriculture loans. These loans can also be utilised to acquire additional land for business expansion, finance the purchase of livestock to seize market opportunities and manage financial pressures through recovery and restructuring options. Moreover, they can support renewable energy projects that generate extra income from underutilised land or farm waste. Agriculture loans can also help diversify farming activities to reduce risk and increase revenue or assist with property development, renovations and repairs to boost value and create new income streams.
Our farm and agriculture business loans
Our fuss-free, unsecured farm business loan lets you spread the cost of essential agricultural inputs over 12 months, reducing cash flow pressures and giving you greater flexibility to negotiate costs and payment terms.
White Oak UK Sales Director, Andy Davies says:
Financing the cost of inputs with White Oak UK is simple. We won’t ask you for reams of unnecessary paperwork, and you’ll receive a fast decision on your loan. Our digital documentation also accelerates the process, with approved monies released into your account in as little as a few days, letting you get on with running your business
In addition to financing the cost of your farming inputs, we can also assist you in arranging funding for many other loan and asset finance needs.
The benefits of agriculture finance
Agriculture loans offer several key benefits to farmers. Beyond addressing seasonal cash flow challenges – such as covering upfront costs for seeds, feed or equipment while income is realised later – they provide the means to manage essential expenditures like VAT payments or refinancing existing debt. These loans allow for investment in advanced technology and machinery, enhancing productivity and competitiveness. They also support growth by enabling land acquisition, livestock expansion or diversification into new ventures. Additionally, agriculture loans help mitigate risks associated with market volatility or unpredictable weather, and some financing options offer tax advantages, reducing the overall cost of borrowing.
Contact us today and discover how we can help support your agricultural business loan.
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