Are you a UK farmer looking to buy farmland or expand your farm with new buildings? Securing finance can be tough, but the UK government’s Agricultural Mortgage Guarantee Scheme (AMGS) is here to help.
What is the Agricultural Mortgage Guarantee Scheme (AMGS)?
The AMGS is a government-backed program designed to help farmers get loans from banks to purchase agricultural land or buildings. It works by guaranteeing up to 75% of the loan value, reducing the risk for lenders and making it easier for farmers to get finance with better terms.
Why Farmers Need AMGS
Buying farmland or farm buildings often requires large loans with long repayment terms. Traditional banks may hesitate to lend because farming income can be seasonal or affected by weather and market fluctuations. The AMGS helps remove this barrier by assuring banks that most of their loan will be repaid even if the borrower defaults.
Who Can Apply for an AMGS Loan?
Established farmers or farm businesses operating in England, Scotland, or Wales.
New entrants to farming with a viable farm business plan.
Farmers planning to buy land or agricultural buildings for farming purposes.
What Can You Use the Loan For?
Purchasing agricultural land for farming.
Buying or improving farm buildings and structures such as barns, storage units, or livestock housing.
Some lenders may allow refinancing existing agricultural mortgages (check with your lender).
Loan Details: Amount, Term & Interest
Maximum loan size typically up to £500,000, though this can vary.
Loan terms usually range from 10 to 25 years to reflect the long-term nature of farming investments.
Interest rates are competitive because the government guarantee reduces lender risk.
Loans are secured against the land or buildings being purchased, and sometimes additional security is required.
Benefits of the AMGS for UK Farmers
Easier loan approval because the government guarantees most of the loan.
Better interest rates and terms than unsecured loans.
Long repayment periods tailored to farming business cycles.
Enables farmers to expand, improve, or stabilize their operations with affordable finance.
How to Apply for an AMGS Loan
1. Prepare your farm business plan and financial documents.
2. Contact a participating bank or lender — many major UK banks offer AMGS loans.
3. Submit your loan application including details of your farm and loan purpose.
4. The lender evaluates your application and applies for the government guarantee.
5. Once approved, you receive the loan to purchase land or buildings.
Participating Banks in the UK
NatWest / Royal Bank of Scotland
Barclays
Lloyds Bank
Santander UK
HSBC UK
Local agricultural lenders or credit unions may also offer AMGS loans.
Additional Tips for a Successful Application
Clearly demonstrate the viability of your farm business with detailed plans and financial projections.
Highlight your farming experience and long-term vision.
Check if you can combine AMGS loans with government grants or subsidies to reduce your costs.
Consider consulting agricultural financial advisors for expert help.
Final Thoughts
The Agricultural Mortgage Guarantee Scheme is a valuable resource that can open doors for UK farmers who need financing to purchase land or farm buildings. By reducing lender risk, AMGS makes it easier and cheaper for farmers to access long-term finance essential for growth and sustainability.
If you’re planning to grow your farm or buy new land, explore AMGS loan options with your bank today — and feel free to reach out if you want help preparing your loan application or farm business plan!