Rob Lister, Director of R&BS, was recently invited to write for the National Association of Commercial Finance Brokers (NACFB) on why specialist finance brokers are essential in the agricultural industry. Here, he switches that perspective looking through the lens of today’s farming challenges.

A shifting lending landscape

The way UK businesses access finance has fundamentally changed. According to the NACFB Impact Report 2024, 67% of small to medium enterprise (SME) lending now flows through brokers rather than directly from banks.

Jim Higginbotham, CEO of the NACFB, summed it up:

“Brokers should not just be seen as intermediaries – they’re growth partners. Their ability to match SMEs with the right solutions is why two-thirds of commercial lender portfolios flow through brokers. In a world of algorithms, brokers prove that relationships matter. They’re not just navigating change – they’re redefining the role of the trusted advisor, becoming the modern-day bank manager who blends human insight with market expertise to help drive UK plc forward.”

The challenges of farming finance

Those roles are even more important in the agricultural sector.

Today’s farms face unprecedented complexity. Fluctuating commodity prices, unpredictable weather, environmental pressures, evolving Government support and regulations, and recent inheritance tax changes all add uncertainty.

Many farms are also diversifying into ventures like holiday lets, farm shops, and commercial storage which adds layers of financial complexity. Traditional banking models often struggle with this. Evaluating seasonal cash flows, long-term investments, and integrated income streams doesn’t always fit into a standard credit assessment framework.

As farms evolve, often adopting new ownership structures for tax efficiency, such as trusts, partnerships, and tenancies, long-standing banking relationships can struggle to keep pace. What was once seen as low-risk and straightforward is now subject to increasingly rigid credit assessments often overlooking the unique realities of farming. This is where specialist agricultural mortgage consultants become invaluable.

Why specialist consultants make the difference

Farmers don’t just need loans; they need finance partners who understand their business. Each farming operation presents unique circumstances. A specialist mortgage consultant, rather than a traditional broker, brings deep sector knowledge and maintains regular conversations with farmers, land agents, and rural professionals to stay attuned to market shifts.

They know how to present a farm’s full financial picture in a way that lenders can understand and support. They also know how different lenders assess risk. What one bank sees as a problem, another may view as an opportunity if the case is presented the right way.

The value of specialist intermediaries

As with other commercial sectors, expertise and risk appetite vary between individual bank managers. While an experienced bank manager might approve a proposal based on its based on underlying strength and potential, a less experienced one may reject it due to unfamiliarity with the sector.

That’s why many lenders increasingly expect tailored, consultant or intermediary-prepared lending proposals that reflect the complexities of rural businesses. Many lenders are expanding their intermediary and broker panels to include agricultural specialists, recognising the value intermediaries add.

The NACFB report also confirms that intermediaries improve outcomes after initial rejections – one in four borrowers who were initially rejected by a lender later secured funding through an intermediary. That’s a pattern we see regularly in agriculture.

From ‘No’ to ‘Yes’ success stories

At R&BS, we’ve seen first-hand how the right expertise can turn a ‘no’ into a ‘yes’:

• A mixed farm was declined when applying for diversification finance. The bank didn’t understand how the non-traditional income streams integrated with the core farming operation. R&BS bridged that gap and secured approval.
• A farm with agricultural, equestrian, and personal income sources was rejected until R&BS worked with a lender to properly structure a solution that appropriately incorporated the personal income to demonstrate serviceability.
• Another case involved complex requirements for debentures and guarantees. Knowledge of lenders and strong relationships with specialist agricultural solicitors allowed R&BS to find a compromise and get the deal over the line.

These aren’t one-offs; they reflect the everyday value of having someone who understands both farming and finance.

R&BS as partners in growth

In a world of increasing financial complexity, a specialist agricultural mortgage consultant isn’t a luxury. They’re becoming essential. They don’t just find mortgages. They build funding cases, identify the right lenders, and structure deals that suit your farm’s needs.

At R&BS, we combine decades of agricultural and banking experience to help farmers access tailored finance that works for their business.

If you’re facing decisions about investment or refinancing, the real question isn’t “Should I use a consultant?” it’s “Can I afford not to?”