Refinancing after a setback: Supporting a Dartmoor Farmer

Farming rarely follows a straight path. Markets shift, personal circumstances change, and sometimes life delivers challenges that no business plan can anticipate. Recently, I worked with on a refinancing case with a borrower whose story reflects just how resilient farmers must be, and how the right financial support can help them regain stability.

This case involved a livestock farmer based within Dartmoor National Park. Following a difficult period that included a divorce and a serious health scare, he found himself needing to refinance an expired loan and rebuild his business from the ground up.

At UK Agricultural Finance, we look beyond paperwork. We take the time to understand the person, the farm, and the wider picture. This case is a good example of how that approach can make a real difference.

A Lifetime in Farming, Adapting to Change

Our borrower had farmed all his life. Like many in the region, he had previously run cattle but had transitioned into sheep farming, alongside maintaining a herd of Dartmoor ponies. These ponies play an important role in grazing and managing the land, particularly within the constraints of a National Park environment.

He sells his livestock through a local market, where he benefits from strong local demand and reliable, prompt payments. Demand for quality sheep in Devon remains robust, which provides a solid foundation for his core enterprise.

What stood out immediately was his ability to diversify income. In addition to livestock, he generates revenue through hay and log sales, contract digger work for regular clients, and environmental payments linked to both land stewardship and forestry. This mix of income streams is increasingly important in modern farming, helping to balance seasonal fluctuations and market volatility.

The Challenge: Refinancing Under Pressure

The immediate issue was an expired loan with another lender. That original borrowing had been used to buy out his ex-wife following their divorce, a situation many farmers will recognise as both emotionally and financially demanding.

Alongside this, the borrower had recently faced a troubling health scare, which combined with the retirement of his accountant led to some elements of his business administrative tasks such as producing formal financial accounts to fall behind.

This left him in a difficult position. He needed to refinance quickly, secure some working capital, and put the right foundations in place for the future, all without the benefit of up to date accounts that many traditional lenders would require.

A Strong Asset Base in Dartmoor

Despite these challenges, the underlying strength of the case was clear. The security comprised approximately 125 acres and benefited from common grazing rights.

The farm sits within Dartmoor National Park, an area that brings both opportunities and constraints. There is a public footpath running through the land, and the farm buildings, a mix of traditional stone and more modern structures, have limited use for intensive modern farming. However, the land itself is well suited to livestock and environmental schemes.

Crucially, the loan to value was low at around 30%. This provided a strong level of security and gave us confidence in structuring a solution that worked for the borrower.

A Practical Lending Solution

We provided a £275,000 bridging loan over 36 months, with 24 months of prepaid, rolled up interest. This structure gave the borrower breathing space. It removed immediate pressure on cash flow and allowed him to focus on rebuilding his business.

Given the low loan to value, the borrower’s age, and his recent health history, we also took the decision to waive the requirement for life cover. This is a good example of how a common sense approach can better reflect individual circumstances.

The deal was introduced by The Farm Consultancy Group, with Kevin Edwards supporting the borrower not only in securing finance but also in planning for the future.

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Looking Beyond Accounts to Assess Viability

One of the key challenges in this case was the lack of formal financial accounts. Rather than seeing this as a barrier, we took a more practical approach.

We assess the borrower’s finances in other ways such as reviewing detailed bank statements, and taking forecasts from The Farm Consultancy Group for the year ahead. We also considered supporting evidence such as environmental payment agreements and forestry income. Taken together, this gave a clear and credible picture of a viable business with multiple income streams.

A Clear Exit Strategy

The borrower had already identified a route to repayment. He plans to sell a few small parcels of land to neighbouring farmers over the next few years, using the proceeds to reduce the loan balance.

While his expectations on land value were optimistic, even a more conservative outcome would still make a meaningful contribution to repayment. Importantly, there is flexibility built into the plan. If the land is not sold within the expected timeframe, alternative options will be explored, including refinancing the remaining balance.

Having a broker involved throughout this process provides an additional layer of support and oversight, ensuring that the exit strategy remains on track.

Supporting Recovery and Moving Forward

What made this case particularly meaningful was the personal journey behind it. This was not simply a refinance. It was about helping someone regain control after a period of significant upheaval.

Now that his health concerns have been resolved, the borrower is focused on rebuilding. He is re-engaging with his business, strengthening his income streams, and taking steps to formalise his financial position.

Farming businesses are deeply personal, often tied to family, identity, and generations of hard work. When challenges arise, the impact goes far beyond the balance sheet.

A Partnership Built on Understanding

This case highlights what UK Agricultural Finance is all about. We combine sector knowledge with a flexible approach to lending, allowing us to support farmers through situations that might fall outside standard criteria.

By focusing on the fundamentals, strong security, realistic income, and a clear path forward, we were able to provide a solution that gives this borrower time, stability, and a genuine opportunity to move forward.

Every farm has its own story. In this case, it is one of resilience, recovery, and careful rebuilding. With the right support in place, the future looks far more secure.