Established UK farms and agricultural businesses can access rural and farming grant and payment schemes (covering productivity, equipment, the environment and sustainability), asset finance for machinery, and — where eligible — government-backed finance such as the Growth Guarantee Scheme. Because agricultural schemes have specific rules and some sectors/uses can be restricted, confirm eligibility, and combine grants with finance where it helps.
Key takeaways
- Rural and farming grant/payment schemes cover productivity, equipment and the environment.
- Asset finance suits agricultural machinery and equipment.
- The Growth Guarantee Scheme may be available where eligible — confirm with a lender.
- Environmental and sustainability support is a major part of farming funding.
- Flexible facilities help with seasonal, uneven farm cash flow.
- Grants often require match funding and combine with finance.
Agriculture has a funding landscape unlike most sectors, with dedicated rural and farming schemes alongside mainstream finance. For an established farm or agricultural business, understanding both — and how they fit together — helps fund equipment, productivity, environmental measures and growth. This guide explains what government funding and finance is available to UK farms and how to access it.
Rural and farming grants
Farming benefits from dedicated rural and agricultural grant and payment schemes, covering areas such as productivity, equipment, the environment and sustainability. These are distinct from general business grants and have their own rules and schedules. Because the specific schemes evolve over time, it is important to check current programmes through official agricultural and rural payment sources rather than relying on older information.
Environmental and sustainable farming
A significant part of agricultural funding now focuses on environmental and sustainability outcomes — encouraging practices that benefit the environment alongside productivity. For established farms, these schemes can be a major source of support, rewarding measures that improve the land, biodiversity and sustainability. Check current rural and environmental schemes for what is available to your farm.
Funding equipment and machinery
For agricultural equipment and machinery, asset finance is often well suited — spreading the cost over the asset’s useful life and using the asset as security. Where eligible, it can be backed by the Growth Guarantee Scheme. Capital grants may also support equipment under certain schemes, and a grant can fund part of the cost alongside finance.
For machinery, asset finance spreads the cost over its working life — and a capital grant, where available, can reduce the amount you need to finance.
Managing seasonal cash flow
Farming income is often seasonal and uneven, so flexible facilities matter. Overdrafts and, where eligible, invoice finance can help bridge the gaps between outgoings (seed, stock, labour) and income (harvest, sales). These can be available under the Growth Guarantee Scheme, with a government guarantee that improves access.
A note on scheme eligibility
It is worth being clear that eligibility for the Growth Guarantee Scheme depends on the scheme rules and the lender, and some sectors and uses can be restricted. Agricultural businesses may be able to access it where eligible, but you should confirm eligibility with an accredited lender before applying. The dedicated agricultural schemes, by contrast, are designed specifically for farming.
The funding routes at a glance
| Need | Best route |
|---|---|
| Machinery & equipment | Asset finance; capital grants where available |
| Environmental measures | Rural / environmental schemes |
| Seasonal cash flow | Overdraft or invoice finance (where eligible) |
| Productivity / growth | Farming grants plus finance |
Who is eligible and how to apply
Eligibility varies by scheme and may depend on your type of farming, size, location and project, with many schemes targeting established agricultural businesses. To access funding: check official agricultural and rural payment sources, your growth hub, the business support finder and sector bodies for grants; speak to accredited lenders or a broker about asset finance and the Growth Guarantee Scheme; and plan match funding to combine grants with finance.
The bottom line
Established UK farms and agricultural businesses can draw on dedicated rural and farming grant and payment schemes — including significant environmental and sustainability support — alongside asset finance for machinery and, where eligible, the Growth Guarantee Scheme. Because agricultural schemes have specific rules and some uses can be restricted, confirm eligibility, check current programmes, and combine grants with finance to fund equipment, productivity and growth.
Frequently asked questions
What government funding is available for farming?
Farms and agricultural businesses can access rural and farming grants and payment schemes, productivity and equipment funding, environmental and sustainability support, and government-backed finance such as the Growth Guarantee Scheme and asset finance. Availability and scheme detail change over time, so check current sources.
Are there grants specifically for farms?
Yes. There are rural and agricultural grant and payment schemes aimed at farming, covering areas such as productivity, equipment, the environment and sustainability. The specific schemes evolve, so check current programmes through official agricultural sources.
Can farms use the Growth Guarantee Scheme?
Eligibility depends on the scheme rules and the lender. Where eligible, agricultural businesses may access the Growth Guarantee Scheme through accredited lenders. Because some sectors and uses can be restricted, confirm eligibility with a lender before applying.
How do I fund farm equipment and machinery?
Asset finance is often well suited to agricultural equipment and machinery, spreading the cost over the asset’s life and using the asset as security. It can, where eligible, be backed by the Growth Guarantee Scheme. Capital grants may also support equipment.
Is there funding for environmental and sustainable farming?
Yes. Environmental and sustainability support is a significant part of agricultural funding, encouraging practices that benefit the environment alongside productivity. Check current rural and environmental schemes for what is available.
Who is eligible for farming funding?
Eligibility varies by scheme and may depend on your type of farming, size, location and the project. Many schemes target established agricultural businesses. Check each programme’s criteria, as agricultural schemes have specific rules.
Do farming grants require match funding?
Often, yes. Many grants cover part of a project’s cost, with the business funding the rest, possibly with finance. Confirm the match requirement before applying.
Can I combine farming grants with finance?
Yes, commonly. A grant might cover part of a project, with asset finance or a government-backed loan funding the rest, subject to the rules and any subsidy limits.
Where do I find agricultural funding?
Official agricultural and rural payment sources, your local growth hub, the business support finder, and sector bodies are good starting points for grants, while accredited lenders and brokers can help with finance.
How does cash flow funding help farms?
Farming income can be seasonal and uneven, so flexible facilities such as overdrafts and, where eligible, invoice finance can help bridge cash-flow gaps between outgoings and income.
Are agricultural grants taxable?
The tax treatment depends on the grant or payment’s nature and purpose. Agricultural payments and grants can have particular treatments, so confirm with your accountant.
How long does farming funding take?
Grant and payment schemes involve application and assessment processes and can run to schedules, so plan ahead. Finance such as asset finance can be quicker for equipment needs.
Can a broker help fund farm equipment?
Yes. A broker can arrange asset finance for agricultural machinery and equipment and help structure a package alongside any grant or payment scheme.
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