Loans

Agribusiness Loans

Information Required for Agribusiness Loans

 

The type of information required will vary with each application but generally includes the following:

  • A minimum of 3 years financial statements/personal income tax
  • A current personal net worth statement of the farm’s principals
  • Cash flow projections
  • Business Plan
  • Appraisals (if necessary)
  • Source of down payment
  • Current listing of Accounts Receivable/Accounts Payable/Inventory

Operating Loans/Authorized Overdraft

  • Operating loans are available to cover operating expenses pending the sale of agriculture products or services.
  • 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
  • Repayment terms normally reflect the “productive life” of the acquisition or 10 years, whichever is the maximum.
  • 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 on fixed rate closed mortgages, of up to 10% annually is allowed without penalty based on the original principle balance 
 

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