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Farm Workshop Finance

Compare finance for a farm workshop from £15,000 to £200,000. As a structure fixed to the land, this is usually funded by a secured loan or agricultural mortgage rather than standard equipment finance.

Can you finance a farm workshop?

Yes, farm workshops are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £15,000 to £200,000, and most deals are written over 24-84 months with a deposit of around 15-25%. Decisions typically take several weeks. Used machines are financeable too, usually with a shorter term.

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Typical Cost

£15k – £200k

Approval Speed

Several weeks

Fit-out equipment can be financed faster and separately

Rates From

5.5% APR

What would a farm workshop cost per month?

£55,000
10%
60 months
9%
£0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical farm workshop price. Indicative only, not a quote.

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Finance options

Hire Purchase (HP)

Rate
From 7.0% APR
Term
24-84 months
Deposit
15-25%
Ownership
Yours at the end
Best for
Only realistic where the building is a genuinely demountable steel-framed kit supplied without permanent foundations, which is uncommon for a working farm workshop

Secured Business Loan

Rate
From 7.5% APR
Term
3-10 years
Deposit
Varies with security offered
Ownership
Fixed monthly repayments
Best for
A common route where the farm has assets to secure against but does not want to extend an existing mortgage

Commercial or Agricultural Mortgage

Rate
From 5.5% APR (variable/tracker options available)
Term
5-25 years
Deposit
Typically 20-35% or existing land equity
Ownership
Long-term secured borrowing
Best for
The most usual way to fund a permanent farm workshop, since the building is fixed to the land

Representative example

On a purchase price of £55,000: a 10% deposit of £5,500, then 48 monthly payments of £1,160 at 5.9% APR representative (fixed). Total amount payable £61,180, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification Guide price Type
Steel-Framed Farm Workshop, Basic Shell £40 - £65 per sqm excluding groundworks (specification class, price not independently verified) Basic Steel Portal Frame Shell
Insulated Workshop with Concrete Floor £60 - £90 per sqm excluding groundworks (specification class, price not independently verified) Insulated Workshop Building
Workshop with Office and Welfare Facilities £80 - £120 per sqm excluding groundworks (specification class, price not independently verified) Workshop with Office Facilities
Turnkey Farm Workshop incl. Groundworks, approx. 200 sqm £60,000 - £120,000 (specification class, price not independently verified) Turnkey Workshop Project

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Tax benefits

A farm workshop built on foundations is fixed to the land and is generally treated as a structure rather than as plant and machinery for capital allowances purposes, in the same way as a cattle shed or livestock building. This applies to the building shell itself. Equipment fitted inside the workshop, such as a vehicle lift, welding equipment, compressors or workbenches, is typically treated separately as plant and machinery in its own right, since this is equipment that could be removed and used elsewhere, quite different to the building that houses it. It is worth financing and itemising workshop fit-out equipment separately from the building shell for this reason.

Market context

Farm workshops are typically built when a farm brings machinery maintenance and repairs in-house rather than relying entirely on a dealer or contractor, or when an existing Dutch barn or general-purpose shed is no longer large enough or configured well enough for modern machinery dimensions. Diversification into agricultural contracting for other farms is another common driver, since a contracting business generally needs dedicated workshop space to maintain a larger fleet. As with other farm buildings, the workshop shell is usually financed through a secured loan or agricultural mortgage, while the fit-out equipment inside it, from vehicle lifts to compressors, is more often financed as standard equipment.

Bad credit?

Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

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Frequently asked questions

Can I finance a farm workshop the same way as a piece of machinery?
Not usually. A farm workshop built on foundations is a structure fixed to the land, so standard equipment finance products such as hire purchase are generally not the right fit for the building shell itself. Most farm workshops are financed through a secured business loan or an agricultural mortgage instead. Equipment fitted out inside the workshop, such as a vehicle lift or welding equipment, is a different matter and can usually be financed as standard equipment.
Should I finance the workshop building and the equipment inside it separately?
In most cases, yes. The building shell is typically financed through a secured loan or mortgage given its fixed nature, while equipment such as a vehicle lift, compressor, welding set or workbenches can be financed separately through hire purchase or a lease, since this equipment is genuinely moveable and could be relocated or sold independently of the building. Asking your builder and equipment supplier to provide separate, itemised quotes makes this split easier to arrange.
Does a farm workshop need planning permission?
Many agricultural buildings benefit from permitted development rights, though this depends on the building's size, use and location relative to other structures, and can be affected if the workshop is also used for non-agricultural purposes such as a contracting business serving other farms. This is a matter for your local planning authority rather than something a finance guide can confirm for your specific project.
Can a farm workshop double as space for a diversification business?
It can, but this may affect both the planning position and the finance route. A workshop used purely for maintaining the farm's own machinery is more straightforward from a permitted development perspective than one also used for a wider agricultural contracting or non-farm diversification business, which can require full planning permission and may change how a lender assesses the project. It is worth being clear about the intended use when you apply for both planning and finance.
How long does it take to arrange finance for a farm workshop?
Because most farm workshops are funded through a secured loan or agricultural mortgage, timescales are typically several weeks rather than the 24 to 48 hours common for machinery finance. Where you are financing fit-out equipment separately through hire purchase, that element can often be approved much faster, sometimes within 24 to 48 hours. If the workshop is being built alongside other farm buildings as part of a wider investment programme, it is often more efficient to bring all the projects to the lender together rather than applying for each one separately.

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