An Oxbury Farm Loan can help meet your farm’s long-term financial needs, no matter what you're working on. We offer terms ranging from 6 months to 25 years with competitive rates, including interest-only options. Our loan structure is designed to align with the seasonality and needs of your business, making it flexible for agricultural businesses. Whether you’re expanding, buying land or property, or adjusting your finances, an Oxbury Farm Loan provides the funds you need. It can be used just like an agricultural mortgage, with options that work for you. This flexibility helps support steady growth and long-term success for your farm.
What Is an Agricultural Mortgage?
An agricultural mortgage is a type of loan designed specifically for farmers and rural businesses to buy, refinance, or invest in farmland and agricultural property. Unlike standard residential mortgages, agricultural mortgages can be tailored to the unique financial cycles of farming, offering flexible repayment options that align with seasonal income variations.
How Does an Agricultural Mortgage Work?
An agricultural mortgage works similarly to a standard mortgage but is specifically secured against farmland, buildings, or rural property.
Farmers can use this type of loan to:
- Purchase farmland. Buy additional acreage to expand operations.
- Refinance existing debt. Consolidate or restructure loans for better financial management.
- Buy farm buildings. Invest in barns, storage facilities, or farmhouses.
- Diversify the business. Fund new revenue streams such as agritourism, renewable energy projects, or food processing.
- Improve infrastructure. Upgrade irrigation, fencing, or other essential farm structures.
Who Can Apply for an Agricultural Mortgage?
Agricultural mortgages are available to:
- Farm owners and tenants looking to buy or expand farmland.
- Rural business owners involved in agriculture, horticulture, or equine industries.
- New entrants to farming needing finance to start operations.
- Family farms seeking long-term financial security and succession planning.
Lenders typically assess the farm’s financial performance, land value, and business plan before approving a loan.
What Are the Benefits of an Agricultural Mortgage?
- Long-term financing. Mortgage terms often range from 6 months to 25 years.
- Flexible repayment options. Seasonal repayment structures align with farm income cycles.
- Potential tax benefits. Interest payments may be tax-deductible as a business expense.
- Competitive interest rates. Rates are often lower than unsecured business loans.
- Security and stability. Owning land provides long-term financial security for farmers.