Outside of heritage farms, the days of processing crops and rearing livestock by hand have long since passed. But more recent equipment like GPS-enabled tractors, centre-pivot irrigation systems and manually calibrated feed systems have also been made redundant by cutting-edge innovations. Agricultural technology – or agtech – is transforming the way farms operate, from precision drones monitoring crop health to smart irrigation systems optimising water usage.
These devices increase efficiency, sustainability and profitability, helping farmers meet the demands of a growing population and changing climate. But the upfront cost of farm technology investment can be a significant barrier, especially for small to mid-sized farms. That’s why farmers in the UK and Ireland rely on agricultural finance as an affordable, low-risk way to access the latest tools without compromising their financial stability.
As an independent asset finance broker with over 35 years’ experience, Kane Financial Services connects farmers with reputable lenders who specialise in agtech funding.
Contact us today to discuss your options for agtech asset finance.
Why agtech is essential to the future of farming
Agtech innovations empower farmers to work smarter, not harder, improving outcomes while reducing time, labour and cost. These technologies support data-driven decision making, allowing producers to monitor crop and animal conditions in real time and respond with greater precision. This leads to more accurate use of water, fertiliser and feed, reducing waste and improving yields.
It also enables early detection of problems like crop disease or livestock illness. So you can take action quickly to protect productivity and animal welfare.
Automation is one of the most powerful benefits of farm technology investment. Equipment that automates tasks like irrigation, feeding, monitoring and recordkeeping improves consistency and frees up time for you to focus on high-level business management. These advances make arable and pastoral farms more resilient, more resource efficient and better equipped to face economic and environmental challenges.
5 key technologies for agricultural technology funding
1) Drones for crop monitoring
Drones equipped with high-resolution and multispectral cameras are transforming crop surveillance. By flying over fields and capturing detailed images, they help you assess plant health, monitor growth stages and detect pests or disease early.
They work by scanning crops from the air and generating data that can be analysed to identify patterns or problem areas. This results in faster crop inspections, reduced manual labour, more accurate application of treatments and, ultimately, higher yields with less work.
2) Smart irrigation systems
Unlike conventional watering equipment, smart irrigation systems use a network of soil moisture sensors, weather data and automation controls to precisely manage water usage. These systems apply water only where and when it’s needed. This prevents overwatering, improves consistency in crop quality and helps cut your water bills.
What’s more, you can conveniently control smart irrigation systems using mobile apps or integrated farm management software. That means you can respond to changing conditions instantly and achieve optimal irrigation even when you’re away from the farm.
3) Automated machinery and robotics
From robotic milkers to autonomous tractors and harvesters, automation reduces your reliance on manual labour while improving accuracy and efficiency. These machines often use GPS, sensors and AI to tirelessly perform repetitive tasks without constant human supervision.
By automating time-consuming jobs like feeding, milking, weeding or seeding, you can extend your operating hours without increasing labour costs. That means greater and more consistent results even during busy seasons or when facing labour shortages.
4) Soil and environmental sensors
Embedded sensors give you real-time information about field conditions, including moisture levels, temperature, nutrient content and pH. You can use this information to make better decisions for planting, fertilising and irrigation.
Over time, this contributes to healthier soil and more sustainable land management, as well as better crop care and yields.
5) Livestock wearables and health monitoring systems
Wearable tech like collars, leg tags or rumen boluses allow constant monitoring of animal movement, temperature and behaviour. When these devices detect that something’s wrong, they send an alert to let you know.
This technology lets you diagnose health issues more quickly, leading to lower veterinary costs, fewer losses and more productive animals – all with less hands-on monitoring.
Common agtech funding challenges for farmers
High upfront costs
Many agtech solutions are exceedingly expensive. Even for profitable farms, the upfront cost can be hard to justify when budgets are already stretched by rising costs, machinery maintenance and unpredictable market prices.
And even if you have a good reason, gathering the funds you need to buy agtech systems outright can take years. This often leads to delaying equipment upgrades, forcing you to settle for lower-tech alternatives that don’t deliver the same long-term value.
Difficulty accessing credit
Traditional lenders tend to be cautious when it comes to agricultural borrowing, especially for newer or unproven technologies. Without a strong credit history, significant collateral and a lengthy financial track record, you might struggle to secure a loan.
If you run a small or mid-sized farm, this can limit access to the agtech funding you need to modernise or expand. And while you wait, your larger competitors will just keep growing.
Long ROI windows
Unlike conventional equipment, many agtech investments take a long time to show a return on investment (ROI). For example, yield improvements from smart irrigation systems or long-term savings from automation might not be fully realised for several seasons. This makes it harder for farmers to commit to new technologies, especially when faced with short-term financial pressure or uncertainty about future regulations.
How asset finance support farm technology investment
Asset finance is a flexible, practical way to invest in agricultural technology without large upfront costs.
Instead of buying expensive agtech equipment outright, you partner with a lender who buys it for you and leases it to you. This spreads the cost of the assets into manageable monthly payments. With asset finance, you can protect cash flow and maintain financial stability while enhancing your farm with the latest productivity-boosting agricultural technologies.
The key benefits of asset finance for agtech include:
- Lower upfront costs: Asset finance lets you access the latest technologies without committing to large individual expenses. Instead you can get innovations that improve productivity and efficiency right away while making smaller payments over time
- Better cash flow: Predictable payments make budgeting easier throughout the year. That means you can avoid sudden financial strain during peak seasons or market fluctuations
- Access to superior equipment: Cutting-edge innovations like drones, smart irrigation systems and automation make your farm more competitive. By optimising your tasks and responding better to environmental challenges, you can trade on the same level as larger, more established businesses
- Tax efficiency: There are many tax benefits of asset finance, such as offsetting payments against profits. These reduce the cost of farm technology investment, making asset finance of cost-effective strategy for growth
- Flexible end-of-term options: Depending on what type of asset finance you choose, you can either upgrade equipment, take ownership or return it at the end of your contract. This flexibility lets you adapt to changing needs and avoid being locked into using outdated equipment
- Preserves borrowing capacity: Asset finance doesn’t affect your other lines of credit. That means you can still make use of traditional loans and overdrafts, investing in your farm with multiple funding sources at once
- No risk of bankruptcy: If the worst happens and you can’t make your monthly repayments, the lender will either reclaim their asset or take ownership of your collateral. This protects you from bankruptcy and ensures you can keep your business going even following financial setbacks
Making a strong case for agtech funding
Select a knowledgeable lender
A general lender won’t understand the profit cycles, ROI timelines or challenges of agriculture. So they might protect themselves by charging more interest or setting stricter lending terms. But when you select a niche lender who understands the challenges and opportunities of agtech, they can offer you better rates and terms that suit your business.
These tailored, flexible solutions make it easier to get the equipment you need and continue meeting your repayment schedule. Kane Financial Services has developed an extensive network of reputable lenders throughout the UK and Ireland. That means we can quickly match you with a lender that’s well-positioned to support your business.
Prepare documentation
Financing is always a risk for lenders. So before they agree to give you money or buy assets on your behalf, you’ll need to prove you can pay them back. That means providing financial statements, cash flow forecasts and detailed quotes or specifications for the agtech equipment you want to acquire.
Clear, comprehensive asset finance documentation demonstrates professionalism and reassures lenders you can manage repayments. Our finance specialists don’t just direct you to a lender and consider it a job well done. We’re on hand to advise you on the types of paperwork that can help you make a great case for financing.
With our support, you can show how your new assets will boost profitability and help you pay back what you owe.
Proof of agtech performance
It’s always a good idea to choose a niche lender with experience in agricultural lending. But not all of them will be familiar with every asset you might want. To convince lenders you’re a safe investment, it helps to support your funding application with evidence showing the benefits of your desired agricultural technology.
This might include case studies, pilot project results or data highlighting reductions in operational costs, increases in production or improvements in environmental sustainability. Concrete proof helps lenders understand the investment’s value and long-term potential.
Investing in innovation pays off with Kane Financial Services
Farmers and agricultural entrepreneurs throughout the UK and Ireland rely on Kane Financial Services for trusted asset finance advice.
We’ve spent 35 years building a network of niche lenders who offer more competitive rates and terms than high street lenders. And we provide a range of tailor-made funding options to suit your needs, including asset finance, leasing and hire purchase.
Apply for asset finance online today or speak to one of our specialists to find out how you can safely acquire the latest agtech for your farming business.