Nine in ten tenant farmers fear struggle to secure extra borrowing

Nine in ten tenant farmers seeking additional finance expect difficulty securing it, as new survey findings reveal mounting cashflow pressures following a year of drought and livestock disease.

The Tenant Farmers Association (TFA) surveyed 110 members, with half reporting that they needed to increase borrowing through loans or overdrafts to keep their businesses operating.

Of those needing additional finance, 49% expected securing it to be very difficult, while a further 41% anticipated some difficulty.

Just 10% believed obtaining the money would be relatively straightforward, with no respondents describing the process as very easy.

The findings, published on 7 October and shared with Defra, raise fresh concerns about the financial challenges facing tenant farmers, particularly those without land or property assets to offer lenders as security.

More than four in five respondents said their status as tenants would make obtaining additional finance harder or impossible.

Of those answering the question, 44% believed tenancy arrangements would make securing credit very difficult, while one in ten said it would be impossible.

Unlike owner-occupiers, tenant farmers generally cannot use the land they farm as collateral, potentially limiting their borrowing options at a time when businesses need working capital.

The scale of additional borrowing required was also substantial.

According to the TFA, around 85% of those specifying additional finance requirements needed between £10,000 and £50,000, with more than half requiring at least £20,000.

The findings come after drought, challenging growing conditions and livestock disease placed additional pressure on farm finances, with businesses facing the cost of maintaining production and preparing for the year ahead.

The survey has also revealed considerable support for government intervention.

Some 81% of respondents said they would use a government-backed interest-free business loan scheme if one became available, while a further 10% remained undecided.

The TFA has previously backed calls for a Farming Crisis Loan Scheme, arguing that temporary financial assistance could help otherwise viable agricultural businesses overcome exceptional cashflow pressures.

Such support could provide access to working capital for farmers needing to purchase inputs, replenish livestock and prepare for future production.

The association has now shared its findings with Defra following earlier discussions over the difficulties smaller tenant businesses face when approaching commercial lenders.

The survey was launched after Defra Secretary Dame Angela Eagle requested further evidence of the financing barriers experienced by tenant farmers.

In a parliamentary response on 21 September, the government pointed to the British Business Bank's Growth Guarantee Scheme, saying many agricultural businesses were eligible for support.

However, the existing scheme does not provide interest-free loans, with borrowing costs and lending decisions remaining the responsibility of participating lenders.

The latest survey also comes despite wider figures suggesting agricultural lending has increased.

UK Finance reported in June that gross lending to agriculture had risen by almost a quarter year-on-year during the first quarter of 2026.

However, those figures cover the agricultural sector more broadly and do not establish whether individual tenant farmers are successfully securing the additional finance they require.

Although the TFA survey reflects the experiences of 110 members rather than the wider tenanted sector, its findings highlight the financial uncertainty facing respondents as businesses recover from a difficult year.

The results reflect anticipated borrowing difficulties rather than confirmed loan refusals, with the extent to which lenders have already rejected applications remaining unclear.

The TFA said it would use the evidence in its ongoing discussions with government, pressing for greater recognition of the financing constraints facing tenant farmers.