For some time now, small businesses have been considered the backbone of America. They create jobs, contribute to the economy, and supply many of the products and services people, and other businesses, need to thrive. Of course, we all need food to survive, and many companies’ products and services revolve around agricultural products. With that being the case, farms are certainly among the businesses that keep our country on its feet in more ways than one.
It’s no secret that establishing a farm and keeping it up and running is time consuming and labor intensive. It can also be expensive. On top of that, fluctuating produce prices and costs of essentials can lead to any number of financial hurdles. With all that being the case, farmers often find themselves in need of extra capital. If you need financing for your farm, agricultural lending through Rabobank gives you numerous options.
Beginning Farmer Loans
For one, there are beginning farmer loans. These are geared toward people who are just getting started in the agricultural industry. Dozens of loan options are available to entrepreneurs to help them get their businesses off the ground, but more general lenders are often hesitant to provide loans for startup farms because of the potential risks involved in the industry and other factors. Besides that, those lenders don’t always take into account farmers’ distinct needs and the unique challenges they face.
As such, turning to a lender that specializes in agricultural loans is typically a better alternative. They understand the complexities of the agricultural industry, and they tailor their loans accordingly. If you’re just getting your farm started, they can offer more suitable solutions than standard lenders.
Farm Real Estate Loans
For farmers who need to purchase land to get started or expand, farm real estate loans may be the answer. These loans can also be used to build or update structures on farmland and make other improvements to your property. They’re usually long-term loans, and they offer more favorable terms than conventional real estate loans.
Equipment Loans
Equipment loans are also an option for farmers. They’re designed to help you purchase or upgrade the machinery you need to operate your farm, such as tractors, harvesters, balers, or irrigation systems. They’re usually medium-term loans, and the equipment you purchase serves as collateral. Your lender may offer seasonal repayment plans or other solutions to help make paying back the loan more manageable.
Operating Loans
Operating loans are available as well. They can be used to cover the costs of ongoing expenses, like fertilizer, seeds, fuel, and workers’ salaries. These are generally short-term loans. You pay them back after harvest or once you start receiving income from your products. Their terms can vary depending on your lender, the specific operating loan you have, and other factors.
Getting the Funding You Need for Your Farm
As a farmer, you provide essential products for not only America’s families but also other businesses. Without you, our country couldn’t survive. Getting your products into people’s hands takes money, though, and several financial hurdles may stand in your way. Numerous financing options are available for farmers. Those listed here are only a few of the possibilities. From disaster assistance loans and ongoing lines of credit to grants and subsidies, you’re sure to find a solution that meets your needs.
