You’re trying to plan your year while balancing rising input costs, unpredictable weather, and the latest round of government policy changes. You know the machinery needs upgrading and the electricity bill is creeping higher with every passing month.
This is the reality for thousands of UK farmers today.
The right agricultural finance isn’t just about getting a loan to fill a gap. It’s about creating stability, enabling diversification, and investing in the future of your farm. It’s about having the tools and breathing space to make decisions with confidence – not just for this season, but for the next decade.
At Peregrine Finance, we’ve been working alongside UK farmers for over 25 years. We understand that farming is more than a business – it’s a way of life, often passed down through generations. And while we’re here to share our expertise, we’re just as committed to listening to what the farming community is experiencing so we can shape our services to better support you.
The Current Financial Landscape for UK Farmers
The challenges we’ve seen this year aren’t small ones.
- Economic Pressures: Inflation, high interest rates, and volatile commodity prices are hitting balance sheets hard.
- Policy Shifts: Changes to the Basic Payment Scheme and predicted funding cuts of up to 30% by 2026 are forcing many farms to rethink their income strategies.
- Market Opportunities: There’s growing interest in sustainable farming, renewable energy projects, and agri-tech investments, creating new revenue streams for those able to adapt.
- Operational Challenges: Accessing affordable finance, navigating complex grant systems, and managing weather unpredictability remain constant hurdles.
And the impact of these challenges is stark. In the 12 months to June 2025, 6,365 agricultural businesses closed, while only 3,190 opened – a net loss of 3,175 farms and related businesses.
Rising costs, extreme weather, and shifting subsidies are driving these closures, underlining the urgent need for adaptable, resilient finance solutions.
What is Agricultural Finance?
Agricultural finance is funding designed specifically for farming and rural businesses. Unlike standard business finance, it takes into account the seasonal nature of income, the high value of equipment, and the fact that many farming operations have deep generational roots.
In 2025-26, agricultural finance matters more than ever. High interest rates increase borrowing costs, reduced subsidies put more pressure on margins, and volatile commodity prices make cash flow harder to manage. The right finance product recognises these pressures and adapts to them.
Where traditional finance might see risk, specialist agricultural finance sees the rhythm of the farming year – and structures repayments, terms, and flexibility to match.
Types of Agricultural Finance Available in 2025-26
At Peregrine, we work with you to find finance options that fit your operations, your goals, and your seasonal income patterns.
Farm Machinery Finance
Upgrade to modern, efficient machinery without shouldering the entire cost upfront. Improved productivity, reduced downtime, and long-term savings all start here.
Livestock Finance
Manage cash flow for breeding, herd expansion, or restocking. Seasonal repayment options can align with your sales cycle, easing pressure during lean months.
Solar and Renewable Project Finance
Finance solar panels, biomass boilers, and other renewable energy projects to cut costs and future-proof your farm.
Agricultural Machinery Finance
Beyond tractors – finance irrigation systems, storage facilities, and precision farming tools that improve efficiency and yields.
Forestry Finance
Support woodland management, timber operations, and arboriculture projects, with funding that recognises long growth cycles.
How to Access Agricultural Finance
You’ve seen the range of finance options available – whether it’s a new tractor, a herd expansion, or a renewable energy project. If one of these has sparked ideas for your own farm, the next question is simple: how do you actually secure the funding?
The truth is, agricultural finance doesn’t have to be difficult. Here’s how to take your idea from inspiration to a signed agreement that works for your business:
- Assess Your Needs: Decide what you want to achieve and why. Is it about efficiency, expansion, sustainability, or resilience? The clearer your goal, the easier it is to match it with the right finance product.
- Choose the Right Type of Finance: Different projects need different funding structures. Matching the loan term and repayment plan to your seasonal income patterns is key.
- Gather Your Documents: Keep your income records, asset details, and any project plans handy. It speeds up the process and helps lenders understand your business.
- Apply Through the Right Channel: Specialist lenders like Peregrine are built around farming life, so we can often offer flexible terms that high street banks can’t.
- Combine with Grants Where Possible: Government schemes, rural development funding, and private finance can work hand in hand to make your project more affordable.
The right partner will guide you through each stage, keep the terms transparent, and tailor the package to fit your cash flow – not the other way around. At Peregrine, that’s how we’ve been helping farmers for over 25 years: by making finance work with your land, your life, and your legacy.
Smart Ways to Use Agricultural Finance
Securing finance is only part of the journey – the real value comes from how you put it to work.
The right funding can unlock opportunities that strengthen your business today while laying the groundwork for the next generation.
Whether you’re looking to stay competitive, protect your margins, or create new income streams, agricultural finance can be a powerful tool when used strategically.
Here are some of the smartest ways we see farmers making their finance work harder:
- Expand or Diversify: Add agritourism, renewable energy, or direct-to-consumer sales to your income streams. Diversification can reduce dependence on a single market and open new avenues for growth.
- Improve Efficiency: Invest in automation, irrigation, or precision farming technologies that save time, reduce waste, and maximise yields.
- Manage Risk: Protect against market volatility, extreme weather, and policy changes by investing in infrastructure, storage, and forward-planning tools.
- Build Sustainability: Finance regenerative farming practices and climate-resilient infrastructure that protect your land and your long-term productivity.
By aligning your finance decisions with your farm’s goals, you’re not just spending money – you’re building resilience, unlocking growth, and securing the legacy of your land.
Agricultural Finance & Long-Term Farm Resilience
When you have access to tailored finance, you can plan for more than just the next harvest. You can look three, five, even ten years ahead. This is crucial for the survival of generational farms, where decisions today can affect the next generation’s ability to carry on the family legacy.
With the closure of over 3,150 farms in 2025, the message is clear – margins are fragile, and the right financing can be the difference between shuttering and surviving.
The Future of Agricultural Finance in the UK
As we head into autumn 2025, we’re already thinking ahead to 2026.
Expect to see:
- Digital finance tools that speed up applications and approvals.
- Sustainability-linked loans that reward environmentally friendly practices.
- Integrated risk management to help you weather price and climate volatility.
For farmers ready to invest in their future, these developments open the door to new opportunities – from securing green finance products to building stronger supply chain resilience.
At Peregrine, our commitment is simple: to guide you through these changes with clarity, care, and a personal understanding of what’s at stake for you and your farm.
Building Stability in Uncertain Times
Agricultural finance, used strategically, is more than a safety net. It’s a lever for growth, resilience, and peace of mind. In uncertain times, having a trusted partner who understands your business – and your way of life – makes all the difference.
If you’re ready to explore the right finance options for your farm, we’re here to listen, advise, and support you every step of the way. Get in touch with our team today to start a no-obligation conversation about how we can help you protect your legacy and plan for the future with confidence.
