New Entrant Farm Business Loan for a Young Farmer in Devon
£145,000 · 10 years · 6.75% fixed. A 26-year-old agricultural college graduate wanted to establish his own mixed smallholding in Devon - a rare opportunity given land and capital costs.
The Client
Agricultural college graduate starting a first farm in Devon
The Challenge
A 26-year-old agricultural college graduate wanted to establish his own mixed smallholding in Devon - a rare opportunity given land and capital costs. He had secured a long-term lease on 40 acres, needed to purchase livestock and equipment, and required working capital for the first season. The absence of a farming track record in his own name was the primary lending challenge.
Our Solution
Doulton identified a specialist agricultural lender with a new entrant programme, assessing the loan on the quality of the business plan, the borrower's agricultural qualifications, his mentor relationship with an established farmer, and the security of the land lease. Parental guarantee provided additional comfort.
The Outcome
Smallholding established and operational from year one. By year three the farm was generating a modest but growing income. The young farmer has since expanded his leased acreage to 65 acres and the loan is being repaid on schedule. Key highlights: New entrant agricultural lending - no track record required; Business plan quality and qualifications were primary lending basis; Smallholding now expanded to 65 acres - loan on schedule.