Grain Store and Drying Equipment Finance for a Cereal Farmer in Suffolk
£320,000 · 7 years · 6.25% fixed. A Suffolk cereal farmer wanted to invest in an on-farm grain store and drying system, allowing him to store and sell grain at optimal price points rather than being forced to sell at harvest when prices are typically at.
The Client
Suffolk cereal farmer
The Challenge
A Suffolk cereal farmer wanted to invest in an on-farm grain store and drying system, allowing him to store and sell grain at optimal price points rather than being forced to sell at harvest when prices are typically at their lowest. The capital cost was £310,000. The investment would also enable him to offer grain storage to neighbouring farmers as an additional income stream.
Our Solution
Doulton arranged agricultural asset finance for the grain store and drying equipment, treating the infrastructure as a combination of fixed asset and income-generating facility. The third-party storage income potential was assessed alongside the farm's own benefit. The loan was secured on the farm property and equipment.
The Outcome
Grain store operational at harvest. In the first year the farmer retained 40% of crop for deferred sale, achieving an average price 14% above harvest market. Third-party storage income: £28,000 in year one. Key highlights: On-farm grain storage enabled deferred selling - 14% above harvest; Third-party storage income £28k in year one; Agricultural infrastructure finance - fixed asset and income.