Agricultural Finance

Milking Parlour Construction Finance

A new milking parlour is one of the most significant capital investments a dairy farmer can make. This guide covers finance options, rates and how to structure your application.

Why Finance a Milking Parlour?

Modern milking parlours - rotaries, herringbones and robotic systems - represent major capital investment, often between £150,000 and £1.5 million or more for a complete new installation. Asset finance allows dairy farmers to spread this cost while the system delivers an immediate improvement in throughput and labour efficiency.

Milking parlour finance is typically structured as hire purchase or finance lease and can cover the building, installation, milking equipment and associated dairy infrastructure as a combined facility.

Milking Parlour Finance Rates - October 2026

Lender	Rate From	Best For	Max Term
Lombard	5.8% APR	Large rotary and herringbone systems	10 years
Close Brothers	6.2% APR	All dairy system types	10 years
Shawbrook	6.4% APR	Combined building & equipment	10 years
Aldermore	6.6% APR	Flexible dairy business criteria	7 years

What Can Be Included in Milking Parlour Finance?

Dairy Building

Construction of the milking parlour building, collecting yard and returns yard - civil and structural works.

Milking Equipment

Herringbone clusters, rotary platform, automated cluster removers, milk meters and control systems.

Milk Cooling & Storage

Bulk milk tanks, plate coolers and refrigeration plant can be included in a combined facility.

Cubicle Housing

Associated cow cubicle housing and livestock buildings can often be combined with parlour finance.

Robotic Milking (AMS) Finance

Automated milking systems (AMS) such as Lely Astronaut, DeLaval VMS and GEA MIone can also be financed. AMS finance is typically structured as hire purchase over 5–7 years. The robots themselves are financeable equipment; the associated building is financed separately or as part of a combined facility.

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FAQs

Frequently asked questions

Can I finance a complete milking parlour including the building?

Yes. Most specialist agricultural lenders will combine the parlour building (civil and structural) with the milking equipment into a single combined finance facility.

Is robotic milking system (AMS) finance available?

Yes. Lely, DeLaval and GEA robotic milking systems are well-understood assets for specialist dairy lenders. HP over 5–7 years is the most common structure.

Can I finance a milking parlour upgrade rather than a new build?

Yes. Upgrades to existing milking systems - new clusters, control systems, cooling equipment or an additional rotary bay - can be financed as standalone asset finance.

How long can milking parlour finance run?

Terms of up to 10 years are available from Lombard and Close Brothers for complete milking parlour installations. Shorter terms (5–7 years) are more common for equipment-only elements.

What financial information does a dairy lender need?

Typically two to three years of farm accounts, evidence of milk contracts (including contract price and term), and for larger facilities, a business plan showing the efficiency case for the investment.

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Asset finance for business purposes is not regulated by the FCA. Rates shown are indicative as at October 2026 and depend on credit profile, term, asset and deposit. We act as a credit broker, not a lender. Your asset may be repossessed if you do not keep up repayments.