Farmers encouraged to add value to their produce

Thousands of farmers add value to their produce on the farm by packaging, processing, and then selling it directly to the customer. Rural Asset Finance supports every farmer to do the same.

The company’s team said: “After all, why let someone else turn your grapes into wine, your potatoes into crisps, your fruit into preserves and juices, your milk into cheese, yoghurt or ice cream – when you can make more money doing it yourself?

“Then of course you can sell your own beef, pork, poultry meat, eggs, fruit and vegetables online, or on your premises with a shop, café or even a restaurant.”

Adding value to your produce

The experts explained that all these actions maximise farmers’ profits, which in these times is more vital than ever for farmers needing new revenue streams.

The good news is, even the biggest projects are achievable – with the right help, the financial experts confirmed.

Ben Wood, sales director at Rural Asset Finance, added that more and more farms are seeing the benefits of processing food products and retailing them directly, which keeps more profit on the farm.

“Even just washing and packaging your products before sale can add value – but you can do so much more,” he continued.

Rural Asset Finance gives farmers access to funds for a range of added-value equipment supporting a wide range of diversifications and has financed some impressive innovations.

Its recent projects include the UK’s first batch milking system, and it is currently funding an arable farmer to build their own flour mill.

Mr Wood added: “There are so many opportunities to maximise the value of what you produce.

“Consumers are more conscious than ever before of food traceability but also sustainably – and there’s no better way to do that by buying fresh food and drink that’s produced locally.

“This is a fantastic market for farmers who can add value to their produce. And it doesn’t just keep more of your profit within the farm itself – it can open up whole new revenue streams.”

Power of farm shops

Rural Asset Finance believes that smart farmers are following the market to maximise that value.

Of the 1,500 farm shops in the UK, a third opened within the last 10 years, attracting thousands of customers wanting to reduce their carbon footprint, generating a huge total annual revenue of £1.4 billion.

An upsurge of 70% in British wine sales over the past five years has prompted hundreds of farmers into viticulture, including bottling wine on site.

Increasing numbers of farmers are now making their own cider to serve a UK population that drinks more of the stuff than any other country on Earth.

Rural Asset Finance experts said that these are all excellent and relatively straightforward ways to add value, but it does not have to be food based.

Some farmers have been especially inventive. One in South West England uses the heat from an on-site anaerobic digestion plant to dry and produce straw pellets for sale as cat litter.

A wool farmer in the South East uses lanolin from wool to make toiletries and soaps.

“You just need an idea. Farmers are fantastically resourceful people who are brilliant at thinking outside the box.

“It requires investment, but as we all know, many lenders don’t really understand day-to-day farming and its volatile cashflows. Farmers need specialist finance partners who ‘get’ what your business is about,” Mr Wood said.

Every farm is different

Rural Asset Finance’s core team grew up on farms and knows first-hand the challenges farmers face.

Its sales director explained: “I think our customers appreciate that we speak their language, we know one end of a combine from the other, and that we have lived everyday farm life.

“Crucially, we understand every farm is different. We listen and work with farmers to structure an individual repayment profile that suits them and their cash flow.”

Rural Asset Finance can help add value by offering fixed-term, fixed-rate finance for machinery, vehicles, fixed equipment, land and buildings.

This can work alongside government grants, including the Farming Investment Fund, the Farming Equipment and Technology Fund and the Farming Transformation Fund, which can provide up to £500,000 towards equipment or building projects.

“Grants complemented with the right credit agreements make even the largest projects more achievable than ever with minimal cash commitment required to get started.

“And getting started is easy – there’s never been a better opportunity to make your farm the business you want. Whatever your idea, we’ll listen to it,” Mr Wood concluded.

To find out how to add value to your farm, visit the Rural Asset Finance website or call Ben on 07483 947 877.