Opportunities and challenges from the dry weather conditions in 2018 mean livestock farmers are looking for options to unlock cash to invest in their businesses.
As many farmers are concerned about feed and forage, opportunities have opened up for those with capacity to purchase store cattle at a lower price.
Jon Hercman, of Asset Finance Partners (AFP), said he had seen more farmers with beef, dairy or suckler herds taking an interest in livestock finance as they looked to unlock cash.
He said: “The farmers who require additional feed have had the ability to release cash against their livestock to support this.”
Others were looking to the opportunities increased herd sizes could bring.
He added: “Many farmers in dairy and beef are increasing the size of their operations.”
In the beef industry, he said those farmers finishing increased numbers of cattle were viewing their operations more like a commercial business.
“Having a large herd brings economies of scale. In addition, it is allowing the farmer to go direct to the processor and often negotiate an above market price contract.”
And recent falls in store cattle prices had made buying appealing to many farmers looking to expand their herds.