Insights for businesses

In pursuit of sustainable farming systems throughout the whole sector, the industry has sought out entirely new ways of farming. Such things can be quite costly to acquire, leading to many farmers to seek out different funding and investment solutions.

Thankfully, through leveraging the support of business finance products from specialist lenders like Aldermore, farmers can make great strides in adopting a more sustainable future for their farming practices by investing in new tools and technology.

In this piece, we’ll detail the most recent changes to emissions rules in agriculture, and how finance can help transform farming practices for the better.


Why now? The demand for sustainable agriculture

Sustainability is a word that’s used quite often in conjunction with agriculture. From queries about regenerative farming practices to the importance of sustainable agriculture in general, it’s a subject that many consumers, and farmers, are passionate about.

This passion, in combination with various new rules for emissions, has meant that farmers are seeking out methods of adopting more sustainable farming methods.

Path to Sustainable Farming

The most substantial regulatory framework that farmers face was unveiled in 2021, dubbed a “Roadmap to a better, fairer farming system”.

With the goal of ensuring more sustainable farming by 2028, the scheme focuses on ending diseases in animals, launching an investment fund for farmers to apply for, and simplifying any existing schemes that exist around the subject.

Net Zero Growth Plans

Coinciding with the Path to Sustainable Farming, the UK has launched a new strategy to achieve net zero status by 2050. It covers a wide range of practices, which means far-reaching impacts across all industries from automotive to agriculture.

The practices in question revolve around waste management, emissions production, recycling, and energy efficiency; all of which are heavily associated with agriculture.

Environmental Land Management Scheme

Acting as a successor to the Common Agricultural Policy, the Environmental Land Management Scheme is a government initiative designed to encourage and support sustainable land management within the agricultural sector. It impacts both farmers and landowners and aims to better support farmers to tackle climate change.


The role of business finance in sustainable agriculture

Conforming to these lofty sustainability goals can seem like a large undertaking. The largest obstacle in getting there? Finances. Fortunately, business finance can form a key role in helping farmers and landowners achieve their newfound sustainability goals.


Find out more about Agriculture Finance from Aldermore



Investing in new machinery

Machinery is one of the most impactful sources of environmental issues. Often needing to carry heavy loads, a lot of waste emissions get sent into the atmosphere every day by tractors, mowers, and balers.

In Scotland, it’s estimated that machinery contributes between 5% and 10% of all agricultural greenhouse gas emissions with similar numbers expected across the rest of the UK.

Of course, the logical solution to fighting back against these emissions is to invest in new machinery. But, with tractors alone costing anywhere from £15,000 to £25,000, this is no small feat.

Plus, with the government planning out new regulations for hydrogen-powered farming vehicles via a consultation held in early 2024, these costs are likely to become much higher, as is usually the case with new technology.

In this regard, asset finance for agriculture can be a major benefit. At Aldermore, for example, we offer finance products such as hire purchases, finance leases, and operating leases that can be used for agricultural machinery; all delivered by a team that understands the challenges you face.

Farmers picking apples

Meeting regulatory demands

As seen above, the regulatory landscape for agriculture is ever-changing. New rules and guidance are released seemingly every few years, with farmers needing to adapt quickly and flexibly.

This flexibility demands some source of financial backing – having finance set aside to adapt to new rules and regulations is highly beneficial, acting as a safety blanket to fall back on if such flexibility proves to be too challenging.

Renovations and upgrades

When it comes to the kinds of changes needed to meet regulatory demands, a substantial cost can come in the form of infrastructure, such as upgrading existing infrastructure to conform to efficiency demands.

Upgrades to existing buildings like the addition of solar panels, for example, can all be funded via business finance for agriculture.

Fund your sustainability venture

Aldermore is passionate about helping agricultural businesses become more sustainable. We work with farmers and agricultural workers across the UK, supporting them to secure funding for greener practices to unlock a better future for our planet.

To learn more about how we can help you, visit our asset finance for agriculture page, and speak to our friendly team of experts.


Agriculture Finance from Aldermore

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