Operating Loans / Authorized Overdraft
- Operating loans are available to cover day-to-day expenses pending the sale of agriculture products or services. Normally funds are used to purchase seed, fertilizer, fuel, repairs, feeder cattle, market hogs, etc.
- Flexible terms, conditions and repayment can be arranged to best suit the needs of a farming operation.
- Interest is calculated on the daily balance for the number of days the overdraft is in effect and interest is collected monthly at the end of the month.
- Rates may range from Prime to Prime +4.00% depending upon the security pledged and the financial strength of the borrower.
- Expected to revolve at a minimum of once a year reflecting the seasonal sale of crops/livestock
Farm Term Loans
- Loans are available for machinery purchases, breeding herd expansion, building improvements or construction, and quota purchases.
- Repayment terms normally reflect the “productive life” of the acquisition or 10 years, whichever is the maximum.
- Security will be dependant upon the purpose and the productive age of the asset.
- Pricing may be floating or fixed.
- No prepayment penalties apply
Farm Mortgage Loans
- Loans are available for land purchase, major improvements to buildings and land, or major expansion or re-organization of the farm enterprise.
- These loans normally have repayment terms of 10 to 25 years, with interest rates fixed for terms of one to five years, or floating dependant upon the members preference.
- Prepayment of up to 10% is allowed without penalty
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