Commercial Finance Specialists

Farmers are set to benefit from new sources of finance made available under a scheme launched by DGC Investment Consultants.

A new asset financing scheme is set to provide farmers with much-needed sources of finance for their business.

DGC Investment Consultants' scheme will allow investors with at least £20,000 access to tailored asset financing investment portfolios of tenanted UK farmland.

All land has been valued by the Royal Institution of Chartered Surveyors (Rics), while tenants, on a seven-year lease, have had their equity ratios and cash flow intensively audited to ensure a "strong income" for investors.

Commenting on the new scheme, managing partner at the consultants David Garner said: "Agricultural lending has all but dried up in the credit crunch and farmers are desperate to access capital to refinance previous loans and to fund expansion.

"[We then have] Rics perform a valuation of the farmer's key asset, his land, and purchase the land from them on a seven year lease back basis, creating an extraordinary yield of 7.3 per cent (6.3 per cent after management fees)."

Meanwhile, the Co-operative Farms has invested more than £2 million into its Scottish fruit-growing operation, including a state of the art packing plant near Dundee.