Weathering Change: How One Devon Farm is Restructuring for Generational Transfer
Running a family farm is rarely straightforward. It’s a life shaped by the land, the weather, and long-standing responsibilities passed from one generation to the next. But when personal upheaval and business transition happen at the same time, the pressure can be immense.
That’s the situation one South West farming family recently faced. At a critical moment in their history, UK Agricultural Finance was able to provide a practical, structured lending solution to help them stabilise their finances and move confidently toward the future.
A Legacy of Resilience in the Exmoor Hills
Nestled within the Exmoor hills, this farm has been part of the same family for several generations. Once focused on dairy, it has since evolved into a mixed livestock operation with a strong emphasis on beef and sheep.
The farm is home to a large flock of commercial ewes and a successful calf-rearing system that supports seasonal income. It’s a low-input, hands-on business with a strong work ethic at its core.
While farming remains the focus, the family has a deep connection to the community and a proud history of exhibiting livestock locally—testament to the knowledge and heritage passed down through the generations.
When Life Shifts: Rebuilding After Disruption
Like many rural businesses, the lines between personal and professional life on the farm have always been closely intertwined. But when a significant personal change altered the family dynamic, the ripple effects were felt across the business too.
The farm had historically relied on a long-standing facility with a high street bank. However, as the circumstances within the family changed, the bank declined to renew the facility—citing concerns related to borrower age and the ongoing uncertainty around business structure.
Faced with the need to refinance, the family turned to their broker, who brought the case to UK Agricultural Finance. From the outset, it was clear that the core farming business remained strong. What was needed was a lender who could take a broader view of the situation, understanding both the value of the land and the practical realities of the transition underway.
A Bespoke Solution to Generational Transfers
UK Agricultural Finance provided a High Quality Bridging Loan of approximately £280,000, tailored to meet the family’s short- and medium-term objectives. Key features of the facility included:
- 36-month term, giving the family time to recover profitability and plan ahead.
- Low gross loan-to-value (LTV) of under 25%, secured against c.165 acres of agricultural land (across three titles).
- Prepaid interest, easing pressure on short-term cashflow during a sensitive transition period.
Importantly, the loan was secured solely against land—not the farmhouse or operational buildings. This provided flexibility and protected the core of the family’s home, while still offering strong security for the loan.
The proceeds were used to:
- Repay an existing high street bank facility that was no longer being renewed.
- Clear an additional balance with another short-term lender.
- Provide working capital and contingency funds, helping the farm to maintain business continuity without disruption.
Looking Ahead: Succession, Diversification and Repayment
Although the farm has faced recent disruption, the borrowers have been proactive in stabilising and simplifying operations. Overheads have been reduced, productivity has improved, and the farming system now reflects a clear focus on value-for-effort.
Plans are in place to ensure the loan is repaid responsibly. These include:
- Potential plot sale: A nearby land parcel is being reviewed for residential development. If planning consent is secured and the site is sold, this would provide a clear repayment route—either partial or full.
- Future refinance: Once the business structure is formalised and stability restored, a refinance with another lender remains an option.
- Land sales: Two additional parcels of land have been identified which could be sold, if needed, to support repayment or reinvestment.
Discussions around generational transfer are ongoing, and the family is working towards a formal succession structure. This will help unlock further financial flexibility in future, including access to more traditional funding channels.
The Value of Understanding in Rural Lending
What stood out in this case was not just the quality of the asset or the structure of the business—but the commitment of those running it. Despite difficult personal circumstances, the family has shown resilience and determination to move forward. With the right financial support, they’ve been able to restructure their business and regain a sense of control over their future.
At UK Agricultural Finance, we specialise in lending that takes the whole picture into account. We don’t rely solely on formulas or tick-box exercises. We look at the land, the plan, and—critically—the people behind it.
Whether you’re navigating succession, dealing with restructuring, or recovering from unexpected personal change, there are options available.
UK Agricultural Finance offers bespoke lending solutions for rural businesses that don’t always fit the high street model. If you’d like to speak with someone who understands the complexities of running a family farm, get in touch. We’re here to help.