Award-winning Cattle Championed by UK Agricultural Finance’s Livestock Finance
By Tracey Simm, Business Development Manager at UK Agricultural Finance
In the picturesque landscapes of the British countryside, a story of passion, resilience and ambition unfolds. It’s the story of a family, formerly acclaimed dairy farmers, who ventured back into livestock farming with a renewed vigour, aided by UK Agricultural Finance’s specialised livestock finance. This case study delves into their journey, underscoring how UK Agricultural Finance’s understanding of the agricultural sector and flexible financing can turn farming aspirations into reality.
Rediscovering a Passion for Livestock Farming
After a decade-long hiatus from dairy farming, the yearning for pastoral life led our borrowers back to the auction ring, where their journey restarted with the purchase of a single Hereford cow. Fast-forward, and their modest herd has blossomed into over 140 pedigree Hereford cattle. Recently awarded the highly respected Red Tractor status, they are poised to make a triumphant return to the show ring, reigniting a legacy that previously saw them crowned Champion of Champions at The Great Yorkshire Show with their pedigree Friesians.
Hereford Cattle: A Symbol of Sustainable Farming
The borrowers’ journey with Hereford cattle is not just a tale of rekindling old passions, but also a strategic move towards sustainable and traditional farming practices. Hereford cattle, a native British breed, are celebrated for their hardiness, docility and efficient grazing.
Hereford cattle have gained popularity among farmers seeking to move away from more intensive, commercial European dairy breeds like Friesians and Holsteins. These cattle are renowned for their ability to thrive on grass-fed systems, which aligns well with the growing trend towards more natural, pasture-based farming. Their ability to flourish on less intensive feeding regimes not only reduces the farm’s environmental footprint, but also significantly cuts down on feeding costs, making them a financially viable option for farmers.
Pedigree Breeding and Champion Genetics
The borrowers’ decision to engage in pedigree breeding of Hereford cattle stems from a desire to contribute high-quality genetics to the farming community. Their experience as former dairy farmers has endowed them with a deep understanding of the importance of genetics in livestock farming. By meticulously selecting and breeding their Hereford cattle, they aim to produce bulls that possess not only the breed’s inherent qualities, but also enhanced traits that make them appealing to other farmers.
The bulls bred by the borrowers are intended for sale to farms across the country. Their aim is to provide other farmers with the opportunity to incorporate Hereford genetics into their herds, thereby contributing to more sustainable and efficient farming practices.
A unique aspect of the borrowers’ approach to selling their cattle is their commitment to personally delivering them to the new owners. This practice stems from a deep-seated belief in animal welfare and a desire to ensure that their cattle are well cared for. By personally overseeing the delivery, they can satisfy themselves that the cattle are going to suitable environments where their welfare will be prioritised.
The couple’s history of success in the show ring adds a layer of prestige to their Hereford herd. This recognition not only reflects the quality of their livestock, but also positions them favourably in the market. Their intention to return to the show ring with their Hereford cattle is anticipated to further enhance the demand for their pedigree bulls, as show-ring success often translates to higher market value.
The Challenge of Securing Livestock Finance
Despite their rich farming heritage and promising livestock venture, the borrowers faced hurdles in securing livestock finance through traditional funders. Their primary business being a landlord portfolio meant that banks viewed their foray into cattle farming more as a hobby than a viable income stream, compounded by a lack of historical trading figures. This is where UK Agricultural Finance’s expertise made a difference.
UK Agricultural Finance’s Unique Perspective On This Livestock Finance Requirement
Unlike traditional lenders, UK Agricultural Finance looked beyond mere financial projections. We recognised the borrowers’ multiple income streams, including their landlord portfolio and pensions, and understood their profound commitment to farming. A site visit to their sizable and valuable farm, which they were able to use as security, reinforced our confidence in their dedication and capabilities.
Crafting a Tailored Livestock Finance Solution
With an aim to support their farming aspirations, UK Agricultural Finance provided a gross loan of just over £350,000 at an LTV of below 15% over a 7-year term. This funding arrangement was sensitively structured to align with their lifestyle, ensuring that the couple could continue to indulge in their passion for farming, attending shows and breeding their prized Herefords, while fitting comfortably within their family life and financial plans.
Beyond the Loan: Enabling a Sustainable Farming Lifestyle
This loan was more than just a financial transaction; it enabled this farming family to return to their passion while also supporting other farmers through their breeding of Hereford cattle. This case study highlights UK Agricultural Finance’s commitment to supporting the agricultural community at every stage of life. Understanding that older farmers often face challenges in securing funding for smaller-scale, lifestyle-oriented farming operations, we stepped in where traditional banks could not. Our no age limit policy on loans and deep comprehension of the sector’s dynamics enabled us to support these seasoned farmers in maintaining their cherished way of life.
The Road Ahead: A Sustainable Exit Strategy for this Livestock Finance
The borrowers have charted a clear exit strategy, planning to repay the loan through a combination of rental income profits and potential land sales. This approach reflects their pragmatic yet passionate outlook towards farming, balancing their love for livestock with sound financial planning.
At UK Agricultural Finance, we take pride in enabling farmers to pursue their passions, irrespective of the scale of their operations. This case exemplifies how our tailored livestock finance solutions can rejuvenate the agricultural ambitions of seasoned farmers, ensuring that their legacy and love for the land continue to flourish. For farmers seeking to sustain their lifestyle while indulging in their passion for agriculture, we stand ready to support their endeavours with bespoke financial solutions.
For more information on how we can assist in your livestock farming journey, please reach out to us. Let’s work together to ensure that your farming dreams, regardless of scale or scope, become a thriving reality.