Dairy Farm Refinance and Milking Parlour Upgrade in Somerset
£890,000 · 15 years · 5.90% fixed 5 yrs. A Somerset dairy farmer needed to refinance an existing agricultural mortgage that had reached maturity and simultaneously fund a major milking parlour upgrade to meet new milk processor hygiene standards.
The Client
Somerset dairy farmer
The Challenge
A Somerset dairy farmer needed to refinance an existing agricultural mortgage that had reached maturity and simultaneously fund a major milking parlour upgrade to meet new milk processor hygiene standards. The combined need - refinance plus £180,000 of capital expenditure - required a single agricultural lender able to accommodate both.
Our Solution
Doulton arranged a combined refinance and capital expenditure agricultural mortgage. The refinance cleared the maturing facility and the capital element funded the parlour upgrade. The milk supply contract - with a premium milk processor paying above-market prices for high-welfare milk - was central to the income assessment.
The Outcome
Maturing mortgage refinanced. Parlour upgrade completed before the processor's deadline. The upgraded parlour increased milking efficiency, reducing labour costs by £22,000 per annum. Milk processor contract renewed for a further five years. Key highlights: Combined refinance and capex in single agricultural mortgage; Premium milk processor contract central to income assessment; £22k annual labour cost saving from improved milking efficiency.