Farming has always been a demanding profession, but in recent years, the agricultural industry has become even more challenging and complex.
Farmers across the UK have had to cope with extreme weather conditions, thin operating margins due to inflation, and labour shortages.
While the current agricultural landscape may be difficult, there is a lifeline for struggling farms: agricultural finance.
Not only does this financial support help farmers manage vital cash flow, but it also provides the opportunity to invest in cutting-edge agricultural technology or livestock, transforming the way farms operate.
In this blog, we’ll discuss how farmers can utilise agricultural finance to safeguard their farming business from the recent industry challenges.
Battling the elements
One of the most unpredictable and uncontrollable factors that farmers face is the weather, and there’s no telling whether the next season will lead to floods, droughts, or unseasonable temperature fluctuations.
All of these scenarios can have devastating effects on crops and livestock, and farmers require immediate resources to repair damages, restock supplies, and replant crops.
The upfront cost of these repairs has the potential to ruin an already struggling farming business. That’s where agricultural finance can help, providing access to the necessary funding to keep the farm up and running, either via cash flow boost or by spreading the costs of much needed investments.
Navigating the thin margins of inflation
Operating within razor-thin margins is a common challenge for farmers. Inflation, paired with fluctuating prices can erode profits and put significant strain on cash flow.
This financial pressure makes it essential for farmers to have access to flexible and tailored financing solutions.
While there are various lending options available, trying to secure funding is a time-consuming process and due to the nature of your business and the increased risk to lenders during inflation, your application may be declined.
With agricultural finance from Shire Leasing’s dedicated Finance for Farms division, you don’t have to worry about a drawn-out application process. At Finance for Farms, our experienced Account Managers take the time to understand your specific requirements, and our in-house writersfocus on your application based on it’s unique merits, turning around finance decisions in as little as 4 hours.
Adapting to labour shortages
As workers gravitate to urban areas, rural areas are facing a significant lack of skilled labour. This scarcity can lead to delays in planting and harvesting, severely affecting overall productivity. Emerging and advanced technology could go far in helping farmers remedy this issue, boosting productivity, and improving their output and can be accessed more affordably than you might think through our agricultural equipment leasing options
Embracing agtech solutions
While the benefits of agtech are clear, and farmers are open to introducing innovative solutions to their operations, the adoption of cutting-edge equipment can be hindered by insufficient finances holding farmers back.
From precision farming technology to advanced data analytics, agtech solutions have the potential to transform farm management. However, the initial investment required to acquire these technologies can be substantial.
The answer to this is agricultural finance which allows farmers to secure funding and access the cutting-edge equipment they need for the survival and growth of their business, without upfront costs and with manageable, fixed payments over an agreed term.
To find out about the types of equipment, livestock and supplies you can secure finance for, you can find more information here.
Agricultural finance solutions from Shire Leasing
At Finance for Farms, the dedicated agricultural finance division of Shire Leasing, we have a variety of finance solutions available, designed specifically to help British farmers weather turbulent times in the agricultural industry.
To find out more about how you can get access to the assets you need for the survival and growth of your farm, get in touch with our expert team today.