£3.5m Agricultural Loan Supports Farm Business in North Wales
Farm businesses rarely stand still. Over time they evolve, diversify and expand as opportunities arise. For many farmers, growth can involve acquiring land, investing in infrastructure, and developing additional income streams alongside traditional livestock enterprises.
UK Agricultural Finance recently supported one such business in North Wales, providing a £3.5 million agricultural refinance loan arranged by Business Development Manager Sue McIntosh-Gibbs.
The loan, secured across a portfolio of farms and land parcels totalling approximately 800 acres, enabled the borrower to repay existing loans of around £3.2 million, while also providing contingency funding and working capital for the continued development of the business.
With an approximate loan-to-value of 45%, the facility allowed the borrower to consolidate borrowing and simplify the financial structure of a large and highly diversified rural estate.
A Large Rural Estate with Strong Agricultural Infrastructure
The security for the loan includes a number of agricultural properties and parcels of land across North Wales.
These include:
- A 200-acre farm comprising grazing land, barns and a farmyard
- A second farm including a farmhouse and additional grazing land
- Further agricultural land parcels across the region
In total, the loan is secured against approximately 800 acres across more than 15 separate land parcels and properties.
The farms are well positioned for livestock farming, with excellent access to local livestock markets and abattoirs, while several poultry processors operate nearby. All properties benefit from access to council-maintained B-roads with convenient links to A-roads, ensuring efficient transport routes for livestock, feed and equipment.
This strong infrastructure supports a large-scale agricultural operation that has grown steadily over many years.
From Six Acres to a 1,300-Acre Farming Enterprise
The borrower’s journey in farming began modestly. Having grown up on a family farm still owned by his mother nearby, he began working on a neighbouring farm while renting just six acres of land.
Determined to build his own business, he purchased his first 20 acres and gradually began expanding the holding. Over time, he acquired neighbouring parcels of land close to the original farm, steadily building the business into the large rural enterprise it is today.
Throughout this process, the borrower has taken a strategic approach to development. In addition to purchasing farmland, he has:
- Renovated farmhouses
- Improved land quality and productivity
- Added agricultural sheds and infrastructure
- Invested in equipment and modern facilities
In some cases, he has also renovated and sold properties once improvements were completed, reinvesting the capital into further land purchases to expand the core holding.
This long-term strategy has resulted in a 1,362-acre farming estate incorporating farmland, residential property, holiday accommodation and agricultural infrastructure.
A Diversified Farming Business with Multiple Income Streams
Today, the business operates as a diversified rural enterprise with activity spanning several sectors.
Alongside traditional livestock farming, the estate also includes:
- Poultry production
- Beef cattle
- Sheep finishing operations
- Holiday lets and rural tourism accommodation
- Buy-to-let residential properties
This diversification provides resilience and reduces reliance on any single source of income, allowing the business to benefit from multiple revenue streams and economies of scale.
A Well-Regarded Sheep Finishing Operation
Sheep farming forms a key part of the agricultural business. Each autumn the borrower purchases approximately 3,000 store lambs, which are then finished on the farm before being sold through local markets and abattoirs.
At present, around 1,000 sheep are managed on the holding, with livestock sold either as fat stock or store animals depending on market conditions.
The borrower has built a strong reputation locally for producing high-quality livestock, and buyers often contact him directly when they require specific quantities of sheep.
Operations are highly efficient thanks to modern sheep housing facilities, including raised flooring systems that help keep animals clean and reduce the risk of foot rot. Automated feeding and cleaning systems also allow batches of sheep to be processed quickly and hygienically between cycles.
The enterprise is run by the borrower with the support of a part-time employee and casual labour, ensuring the operation remains flexible and cost efficient.
Expanding Poultry Production
Poultry farming is another major part of the business, with several poultry sheds already operating on the farm.
The borrower is currently constructing an additional large poultry shed, which will further increase production capacity once completed.
The poultry units are equipped with modern infrastructure designed to maximise efficiency while keeping operating costs under control. This includes:
- Automated feeding systems
- Modern flooring and cleaning systems
- Gas heating systems
- Biomass boilers, which reduce running costs and generate income through the Renewable Heat Incentive (RHI)
A trusted local contractor works closely with the borrower and helps manage the poultry units on a day-to-day basis, ensuring continuity and reliable operations.
A Smaller but More Profitable Beef Enterprise
While the farm previously operated a larger cattle herd, the borrower has chosen to scale back the beef operation in recent years.
By focusing on a smaller number of high-quality cattle sold locally, the business has been able to increase profitability per animal while reducing management time.
This change reflects the borrower’s broader strategy of optimising each enterprise to ensure the overall business remains efficient and sustainable.
Growing Rural Tourism and Holiday Let Accommodation
In addition to agricultural enterprises, the borrower also operates a successful holiday let business across the estate.
The accommodation portfolio currently includes:
- Eight two-bedroom lodges
- Six larger lodges suitable for six guests
- Two shepherd’s huts
- Two wooden pods, some with hot tubs
- One holiday house
Bookings are managed primarily through platforms such as Airbnb and Holiday Cottages, with the business benefiting from a high level of repeat customers.
During off-peak periods the business typically receives 20–30 bookings per week, while peak summer months from June to August are usually fully booked.
As a result, marketing requirements are minimal, with much of the business generated through returning visitors and word-of-mouth recommendations.
Consolidating Borrowing with a Farm Refinance Loan
As the estate expanded over time, the borrower had accumulated several loans secured across different properties and parcels of land, totalling approximately £3.2 million.
While the business remained profitable, the borrower wanted to simplify the financial structure and improve working capital flexibility.
UK Agricultural Finance provided a £3.5 million loan secured across multiple farms and land parcels, allowing the borrower to repay the existing loans while also retaining funds for contingency and ongoing business operations.
The loan represented an approximate loan-to-value of 45%, reflecting the strength and scale of the underlying agricultural assets.
Future Plans and Exit Strategy
The business continues to grow, with further investment already underway.
A new poultry shed is due to be completed this year, increasing capacity and creating additional revenue for the farm.
The holiday let business is also expected to expand further, with potential for additional accommodation units as demand for rural tourism continues to grow.
As part of the long-term financial strategy, the borrower intends to sell selected parcels of land over the next two to three years. This will reduce the outstanding loan balance and may allow the remaining borrowing to be refinanced with a high street lender in the future.
The estate also includes land that could be sold if required, with strong demand from neighbouring farmers looking to expand their own holdings.
Supporting Diversified Farming Businesses
Sue McIntosh-Gibbs, Business Development Manager at UK Agricultural Finance, said:
“Many modern farms operate across several different enterprises, from livestock and poultry production through to tourism and property. Traditional lenders can sometimes struggle to understand these complex rural businesses.
“In this case, the borrower had built an impressive farming estate over many years, starting with just a small parcel of rented land. Our role was to provide a finance solution that recognised the scale and diversity of the business while consolidating existing borrowing and supporting future growth.”