How finance can help first-generation farmers build their legacy

Unfortunately, for many of these new entrants, access to the assets they need to match this determination remains out of reach. This isn’t because they lack ideas, but because they simply do not have the long trading history or significant collateral that traditional lenders expect (through no fault of their own).

Sector-aware, flexible finance can make the difference for these young farmers. This is not about handouts but it is about giving ambitious farmers a fair start, explains Shire Leasing.

The rise of first-generation farmers

First-generation farmers are starting to establish themselves and are passionate about reshaping what the industry looks like.

Their routes to becoming farmers are varied. Some are simply trained agronomists or have experience on farms, be that through employment or because of familial connections, whilst others have taken over tenancies, leased land, or formed cooperative ventures.

They are also part of the digital first-generation. For instance, they are not afraid to adopt cutting-edge agri-tech to make farming more efficient, and many also tie their farm work to strong environmental beliefs.

But most crucially, they are building their businesses from scratch and as any business owner will tell you, that is hard enough without barriers being put in place.

Traditional finance doesn’t make it easy for first-generation farmers. Bank managers often require a great amount of information, often stretching back years, in order to feel comfortable providing loans of financial solutions. Information about trading or existing equity is non-negotiable for legacy finance firms, but for new entrants, they simply will not have had the time to accrue this.

So how can you grow a farm if the tools you need are out of reach because you are not an old enough institution?

Common challenges

Typically, first-generation farmers face three main barriers to finance:

1. Lack of trading history: You might be running your farm brilliantly, but if your only have one or two years under your belt as a farmer, most traditional lenders will consider you high risk.
2. Limited collateral: Without owned land or high-value assets to offer as security, many first-time applicants fail to apply for finance right from the start.
3. Bank bias: Whether it’s a box-ticking exercise or an assumption about experience, many new farmers simply feel overlooked by mainstream finance providers.

And when margins are tight and time is short, opportunities are fleeting – being told to “come back next year” just doesn’t cut it.

Got the plan, not the capital? Shire Leasing can help. Speak to the team.

Finance as an equaliser

Here is where the right finance partner can help first-generation farmers avoid bias.

Shire Leasing looks at where you are going rather than what you have accumulated.

The company supports many first-generation farmers across the UK by providing asset finance that reflects their situation and ambitions. It aims to support young farmers with clear visions by helping them access asset finance solutions that are practical and aligned with how their farms are developing.

The difference with asset finance is that the agreement is primarily supported by the asset itself rather than by property or long trading histories. So, if you are investing in livestock handling equipment, tractors, feed systems, or new technology, the value and suitability of that equipment play a central role in the lending decision, alongside the wider structure and circumstances of the farm.

Securing risk against the asset means that first-time farmers with sound plans can move forward without needing to wait 10 years to build up capital.

Investing in livestock handling

Picture a young beef farmer who has just taken on a tenancy after years of managing stock for other farms. He has secured a contract to supply a local butcher with native-breed beef, but does not have the facilities to handle animals efficiently or safely.

A traditional lender is not interested, and the beef farmer has no ownership of land or trading history – meaning a deal is near impossible.

This beef farmer then heads to a company like Shire, who take a different approach. He has secured a buyer, has the experience, and obviously, a clear need – a mobile livestock handling system, crush, and weight scale to meet his welfare and efficiency goals.

By structuring the lease around the value of the assets and aligning repayments to seasonal income, the finance can be arranged in a way that reflects the farm’s structure and helps manage risk alongside cash flow.

The result: The farmer is now supplying that butcher regularly and planning his next investment.

Why it works

Finance works for first-generation farmers when it reflects the realities of agriculture today. This looks like:

• Asset-backed security because the equipment itself underpins the finance
• Flexible terms that are structured around seasonal cash flow
• Fast digital-first approvals in which decisions are made in seconds, not months down the line
• Sector understanding, be it tractors to agri-tech, Shire knows what farmers need.

Finance for new entrants is not about making it easy or ignoring the realities of farming. It’s about making it fair and giving them a chance.

Shire’s commitment to new-generation farmers

At Shire, the agricultural division exists to support farmers who are just starting as well as those with three generations behind them.

The team know that building a farm today looks different and might mean leasing land, diversifying early, or investing in tech before you ever own a barn.

While legacy lenders might measure your success by how long you have been around, Shire aims to help you grow with access to premium assets on terms that work for you.

Book a consultation and take your first step today. Your legacy does not need to start with land deeds and family history. It starts with your decisions and the partners who believe in them.

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