Restructuring Finance: Supporting a Welsh Hill Farmer’s Journey to Recovery

At UK Agricultural Finance, we understand that farming isn’t just a business—it’s a way of life, often handed down through generations. But even the most experienced farmers can face financial challenges beyond their control. As a Business Development Manager, I see the real stories behind the numbers. This is one of them: a determined Welsh hill farmer, deeply rooted in his land and community, who needed the right kind of support and restructuring finance to steady the ship and secure a future for the next generation.

A Working Hill Farm Under Pressure

Tucked into the rugged hills of rural Wales lies a traditional upland livestock farm—stone-built, wind-weathered, and full of history. This is where our borrower grew up, where his father and grandfather farmed before him, and where he has taken on the flock with the hope that his young daughter will one day do the same.

But recent years have not been easy. A difficult and acrimonious divorce disrupted both the business and personal finances, leading to a series of County Court Judgements (CCJs) and a cashflow crisis. Compounding matters, the farm was impacted by a TB outbreak in 2024, preventing any movement of cattle over the winter and reducing turnover significantly.

To stay afloat, the borrower had taken out a high-interest commercial loan of over £1.2 million. Despite making substantial capital repayments totalling nearly £675,000 across 2024 and 2025, the remaining balance—combined with interest payments exceeding £10,000 per month—was unsustainable.

A Traditional Farm with Strong Foundations

The farm itself remains a valuable and productive asset. It comprises:

• A four-bedroom stone-built farmhouse, dating from the 1800s, which has been recently upgraded with an air source heat pump, solar panels, new radiators, and internal insulation under the ECO4 scheme.

• Eight outbuildings, including cattle housing, calf sheds, general-purpose barns, silage storage, and a slurry lagoon.

• 65 acres of predominantly permanent pasture, well-suited to livestock grazing, with a small section of woodland.

Several of the outbuildings, subject to planning, offer potential for conversion into holiday accommodation—opening the door to future diversification. The farmhouse itself is full of character and would appeal to both farming families and lifestyle buyers. As a condition of our loan, we required an Energy Performance Certificate (EPC) prior to completion, reflecting our continued commitment to sustainable lending.

An Experienced Farmer with Deep Community Ties

The borrower runs 250 breeding ewes, including over 200 Welsh Mountain sheep and five pedigree Sussex sheep. Lambs are sold throughout the year, generating consistent income. He also maintains a small herd of pedigree Welsh Black Mountain cattle, regularly shown—and successfully—in local and national competitions.

During the winter months, he also takes in store cattle on a “bed and breakfast” basis from a well-known breeder. Feed is provided, and he oversees day-to-day welfare, creating a valuable secondary income stream. On top of that, he works three days a week at two local livestock markets—further reinforcing his place in the community and contributing to loan affordability.

He is LSA-trained (Learning Site for Agriculture), offering practical training to others, generating a small additional income and sharing his knowledge through NFU connections. He’s also heavily involved with the Royal Welsh Show—as a steward and judge—and leads a young farmers Tug of War team. His local reputation is solid, and his commitment to the rural economy is evident in everything he does.

Our Finance Solution: Practical, Flexible, and Focused on Recovery

Our approach at UK Agricultural Finance is never one-size-fits-all. It’s about understanding the story behind the figures, and this borrower’s story was one of resilience and determination—not financial mismanagement. That’s why I was pleased to support him with a term loan of approximately £700,000 over 84 months, secured as a first charge with a Gross Loan-to-Value of a little over 55%.

The loan proceeds were used to:

• Redeem the remaining balance of the high-cost commercial loan, lifting the burden of unaffordable monthly repayments.

• Satisfy several outstanding CCJs, helping to restore the borrower’s credit profile and financial stability.

• Clear other accrued business debt, creating a clean slate for the future.

By stepping in at the right time, we were able to provide not just financial relief but breathing space—to allow the business to recover, grow, and plan ahead with confidence.

Planning for the Future: Diversification and Legacy

While farming remains the core business, the borrower has realistic plans for future diversification. The first phase is the renovation of an old stable block into holiday accommodation—a venture his life partner has previous experience with through a family business. If successful, further barn conversions are on the horizon, opening up longer-term revenue streams.

He’s clear-eyed about the challenges but determined to leave something of lasting value for his daughter. At just eight years old, she already plays an active role on the farm—raising and showing her own Welsh Black heifer, which she personally feeds before school and prepares for competitions. She’s already won several local prizes and even placed fourth at the Royal Welsh Show.

That’s the legacy this borrower is fighting for—and that’s what makes this farm worth saving.

A Path Back to Stability

Despite setbacks, the farm remains EBITDA positive, with revenue returning to healthy levels in 2025, following the induced turnover in 2024 due to TB restrictions.

The borrower has stated that he would sell land if required to support refinancing or affordability. However, with diversified income streams, part-time employment, and cleaner balance sheets, we’re confident he won’t need to. The goal is to refinance with another lender once trading accounts reflect the business’s improved performance—something I believe is very achievable given his current trajectory.

Why UK Agricultural Finance?

What stood out most in this case was the borrower’s perseverance. This wasn’t someone looking for a handout—he just needed the right partner to help him press the reset button. At UK Agricultural Finance, we’re proud to provide recovery and restructuring finance when it’s backed by a sound plan and a genuine will to succeed.

We understand that life happens—divorces, disease outbreaks, and market fluctuations. But we also believe in second chances. This case demonstrates our willingness to lend where others might not—because we look at the bigger picture.

Farming is never easy—but it’s often made harder by lenders who don’t understand the nuances of rural life. At UK Agricultural Finance, we bring both professional financial expertise and a deep understanding of agriculture.

If your farm is facing financial pressure but your vision for the future is strong, get in touch. Recovery is possible—with the right partner by your side.