Agricultural Finance FAQs

Applying for a farm loan is simple and easy with Anglo Scottish. Begin by telling us about your business, the land you wish to acquire and your ideal repayment plan, and we’ll get to work on finding the best funding partner and funding terms available for you.

To find out more about applying for a specific form of agricultural finance, head over to the relevant service page via the links above!

A farm loan mortgage is much like a normal residential or business mortgage, but has tailored terms that support you with the purchase of farmland. Find out more on our farmland loans page.

Farm equipment can be financed with either a hire purchase agreement or a lease agreement, depending whether or not your business wishes to own the asset when the agreement is complete.

We always recommend discussing your options with one of our agricultural finance experts before making a decision.

The answer to this will depend on a range of factors, such as the overall value of the farm equipment, the terms you have agreed with your lender and how much you wish to repay each month.

Since there is often a lot of variation within these factors, the average length of a farm finance agreement can change significantly.

Typically, agricultural land is financed via a special agricultural mortgage, which works in much the same way as a residential mortgage. Like a home mortgage, these are available as both fixed-rate and variable-rate agreements and can vary in length according to your preferred repayment schedule.

We have been brokering these mortgage agreements for 30+ years and can easily support your business, whether it’s your first agricultural mortgage or you’re looking to expand to new land.

Almost any farmer or farming business can gain access to agricultural finance with Anglo Scottish. Thanks to our extensive range of funders, we can offer a wider range of loan terms than traditional lending institutions, like the big banks.

This means extended loan eligibility – so your business may still meet our lending criteria even if your credit application was rejected by a bank. Get in touch today to find out if you’re eligible for agricultural finance with us.

Agricultural mortgages typically carry a higher deposit rate than residential mortgages, which tend to range from 5%–25%.

Agricultural mortgages, on the other hand, are more likely to range from 20%–40% of the property’s overall value. However, some flexibility may be available, depending on the land and your lending requirements.

Hire purchase is a form of agricultural asset finance that enables your business to become the full-time owner of an asset (such as a vehicle or machinery), once you have completed the repayment plan.

Once you’ve completed your hire purchase plan, the asset will be yours to keep.

This differs from agricultural leasing, under which, the asset will return to the lending company once the total balance has been repaid.

Hire purchase provides less flexibility if you believe you will need to upgrade the asset in the medium-term, but may be a great option for long-lasting assets, like tractors or other key machinery.

Most high-value assets used in agriculture can be financed via hire purchase agreements. These include, but aren’t limited to:

• Tractors
• Combines
• Balers
• Ploughs
• Seeders and planters
• Spreaders
• Cultivators
• Irrigation machinery
• Livestock feeders
• Livestock milkers
• …and much more!

If you require a specialist asset that isn’t listed here, we might still be able to help! Head over to our agricultural finance services page to find out more.

Interest rates on farm loans can vary for a number of external reasons and are likely to do so over the course of your mortgage. This means that, if you opt for a variable-rate agricultural mortgage with us, your monthly payments can be subject increases and decreases.

Keep an eye on the Bank of England’s interest rates to stay informed about the current situation and chat to your mortgage advisor for more information.

Agricultural finance agreements are niche financial products that are specifically tailored for farming businesses to help purchase farming assets. They may also incorporate unique repayment structures that can accommodate the farming sector’s reliance on seasonal payment cycles.

In short, yes. We work with a range of funders that pride themselves on making finance available for as many people as possible.

So, if your finance application was rejected by a different broker or bank based on your credit score, you may still be able to access finance with us.

Our portfolio of 70+ funders means that we can offer a wider range of repayment options and interest rates. Longer-term repayment schedules and different interest rate options are available, so get in touch to discuss your specific business needs.

Where asset ownership is involved, there are a number of tax benefits available for UK farmers who are using agricultural finance.

These include schemes such as Capital Gains Tax (CGT) Relief, Annual Investment Allowance (AIA) and tax-deductible interest. We always recommend discussing this with your accountant in order to find out which tax benefits are available to you.