September 22, 2021
Farmers know that the expenses of running an agriculture business can be high and securing financing is essential for success. Agriculture loans are helpful for starting out in the industry, expanding operations, and ensuring stability.
Purchasing up-to-date farm equipment can allow for more efficient work and higher returns. Equipment loans help cover these high purchase costs. Livestock, equipment, and seed are investments that take time to generate returns, so plan how much you borrow accordingly since it may need to cover operation costs for the season. Microloans are another option for buying farm implements that can provide easier access to funds with less paperwork; ideal for smaller or beginning farmers.
Agriculture loans can also be used to lease or purchase land to expand farms. Know how this will impact your future returns and what your long-term goals are to determine whether you should rent or buy. Buying land for the long term can be an investment that will pay off. If you decide to rent, find a landlord who values transparency and will communicate well. For more advice on loans for farming land, visit Citizens First Bank for a consultation.
Since commodity prices are known to be unstable and harvests can be at the mercy of unpredictable factors, having a steady cash flow can help your business stay operational. Marketing assistance loans provide financing between seasons to meet operation costs. The USDA Farm Service Agency (FSA) has a loan program in place to help farmers recuperate after severe storms, flooding, droughts, disease, and infestations that can hurt revenue.
Farming requires a high level of land maintenance, and loans can help make this possible. Maintaining equipment and properties are capital improvements to maintain the value of a farm. Loans for conserving resources and the environment are another smart investment since consumers value products produced on sustainable land. Government loans and initiatives provide farmers with financial options to fund soil health, fight erosion, manage the use of fertilizers and pesticides, and preserve habitats through the USDA.
Visit a Citizens First Bank in person or online for advice on financing options for your farm.