UK Agriculture Invoice Finance Statistics 2026
There were about 147,500 private sector agriculture, forestry and fishing businesses in the UK at the start of 2025, employing around 506,000 people (Department for Business and Trade), and 98 such companies entered insolvency in England and Wales in 2024 (Insolvency Service). We removed farm-specific payment-day, shortfall and finance-use figures that we could not trace to a published source.
Key statistics
Private sector businesses in agriculture, forestry and fishing in the UK at the start of 2025. Source: Department for Business and Trade, Business Population Estimates 2025
People employed by private sector businesses in agriculture, forestry and fishing in the UK at the start of 2025. Source: Department for Business and Trade, Business Population Estimates 2025
Annual turnover of private sector businesses in agriculture, forestry and fishing in the UK at the start of 2025. Source: Department for Business and Trade, Business Population Estimates 2025
Company insolvencies in agriculture, forestry and fishing in England and Wales in 2024, up from 84 in 2023 (provisional, not seasonally adjusted). Source: The Insolvency Service
Bank of England Bank Rate, last changed on 18 December 2025, which feeds into invoice finance discount charges. Source: Bank of England
Invoice finance and asset-based lending that UK Finance members provide to UK businesses at any one time (UK Finance, checked 1 October 2026). Source: UK Finance
Estimated amount owed to UK businesses in late payments at any given time, on average £17,000 per business affected. Source: Small Business Commissioner
| Metric | Value | Source |
|---|---|---|
| Private sector businesses in agriculture, forestry and fishing in the UK at the start of 2025. | 147,460 | Department for Business and Trade, Business Population Estimates 2025 |
| People employed by private sector businesses in agriculture, forestry and fishing in the UK at the start of 2025. | 506,000 | Department for Business and Trade, Business Population Estimates 2025 |
| Annual turnover of private sector businesses in agriculture, forestry and fishing in the UK at the start of 2025. | £58bn | Department for Business and Trade, Business Population Estimates 2025 |
| Company insolvencies in agriculture, forestry and fishing in England and Wales in 2024, up from 84 in 2023 (provisional, not seasonally adjusted). | 98 | The Insolvency Service |
| Bank of England Bank Rate, last changed on 18 December 2025, which feeds into invoice finance discount charges. | 3.75% | Bank of England |
| Invoice finance and asset-based lending that UK Finance members provide to UK businesses at any one time (UK Finance, checked 1 October 2026). | £20bn+ | UK Finance |
| Estimated amount owed to UK businesses in late payments at any given time, on average £17,000 per business affected. | £26bn | Small Business Commissioner |
Source: Department for Business and Trade, Business Population Estimates 2025, The Insolvency Service, Bank of England, UK Finance, Small Business Commissioner
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### UK Agriculture Invoice Finance Statistics 2026: key figures | Metric | Value | Source | | --- | --- | --- | | Private sector businesses in agriculture, forestry and fishing in the UK at the start of 2025. | 147,460 | Department for Business and Trade, Business Population Estimates 2025 | | People employed by private sector businesses in agriculture, forestry and fishing in the UK at the start of 2025. | 506,000 | Department for Business and Trade, Business Population Estimates 2025 | | Annual turnover of private sector businesses in agriculture, forestry and fishing in the UK at the start of 2025. | £58bn | Department for Business and Trade, Business Population Estimates 2025 | | Company insolvencies in agriculture, forestry and fishing in England and Wales in 2024, up from 84 in 2023 (provisional, not seasonally adjusted). | 98 | The Insolvency Service | | Bank of England Bank Rate, last changed on 18 December 2025, which feeds into invoice finance discount charges. | 3.75% | Bank of England | | Invoice finance and asset-based lending that UK Finance members provide to UK businesses at any one time (UK Finance, checked 1 October 2026). | £20bn+ | UK Finance | | Estimated amount owed to UK businesses in late payments at any given time, on average £17,000 per business affected. | £26bn | Small Business Commissioner | Source: Department for Business and Trade, Business Population Estimates 2025, The Insolvency Service, Bank of England, UK Finance, Small Business Commissioner
“The Business Population Estimates count businesses in agriculture, forestry and fishing, including many very small and sole-trader farms, so the total says nothing about how many invoice commercial buyers. Seasonal cash shortfalls, payment-day and finance-use figures for farms were not traceable to a published source and are not shown.”
What the numbers mean
UK agriculture sits at the intersection of several cash flow pressures: seasonal production, commodity price volatility and an imbalance of power between smaller suppliers and large food retailers or processors. Primary producers, processors and distributors often wait for payment while paying for feed, fuel, labour and equipment as they go.
The phased removal of Basic Payment Scheme direct subsidies in England, and the rollout of replacement schemes, has reduced the predictable income many farm businesses relied on to smooth seasonal troughs. We could not find a published, sector-specific figure for payment times or the use of external finance on farms, so we do not quote one.
Invoice finance suits agri-food businesses that sell to identifiable commercial buyers, such as food manufacturers, processors and wholesalers. Where invoices are raised against verifiable purchase orders, selective invoice discounting or a whole-ledger facility can release cash before standard payment terms expire. The Bank of England Bank Rate is 3.75%; providers set their own margins and fees, so ask for a written quote.
FAQs
Can farm businesses use invoice finance if their income is mainly from subsidies or direct payments?
Invoice finance is designed for businesses that raise invoices to commercial customers. Subsidy and grant income from bodies such as DEFRA or the Rural Payments Agency does not qualify as it is not a trade receivable. However, farm businesses that sell produce to food manufacturers, wholesalers, retailers, or processors can finance those commercial invoices. Mixed farms with both subsidy and trade income can use invoice finance on the trade portion of their turnover.
What types of agri-food business are most likely to benefit from invoice discounting?
Businesses with a clear B2B invoicing model tend to benefit most. This includes agricultural contractors billing farm businesses for services, food processors selling to wholesale buyers, fresh produce suppliers invoicing retailers or caterers, and animal feed distributors supplying livestock units. The common requirement is a verifiable invoice raised to a creditworthy commercial debtor with a defined payment term.
How does the Groceries Code Adjudicator affect payment terms in the agri-food supply chain?
The Groceries Code Adjudicator regulates the 10 largest UK grocery retailers in their dealings with direct suppliers. It can investigate complaints about late payment and unfair practices. However, its jurisdiction covers direct suppliers to designated retailers, not the full supply chain.
Many smaller or indirect suppliers fall outside its remit, meaning extended payment terms remain common further down the chain. Invoice finance can offset this by accelerating payment without requiring the buyer to change its terms.
Are there invoice finance providers that specialise in the agriculture or food sector?
Several UK lenders have experience in the agri-food sector, including some bank-owned invoice finance divisions and a growing number of independent and specialist lenders. Sector knowledge matters because lenders need to understand seasonal invoicing patterns, commodity-linked pricing, and the creditworthiness of agricultural buyers. Businesses should compare multiple providers and consider whether a whole-ledger facility or a selective single-invoice product better suits their sales cycle.
What due diligence will a lender carry out before offering invoice finance to an agri-food business?
A lender will typically review the business's last two to three years of accounts filed at Companies House, its sales ledger and debtor ageing report, the creditworthiness of its main customers, and any existing charges registered against the business. For farm businesses, lenders may also consider land ownership or tenancy arrangements and any charges held by a bank.
HMRC compliance and VAT registration status will also be checked. The process usually takes one to three weeks for a full facility.
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
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