At Farm Mortgage Loan, we’re dedicated to you, the customer. Our professionals have years of experience helping procure agricultural finance for farms, with the ability to connect you to the best lenders and farm loans available.
With the right steps taken within your financing process, you’ll be setting your farm up for a secure future. In part one of our two-part blog series, here are several tips for a successful farm financing situation.
First and most importantly, plan ahead as thoroughly as you can. You must have a plan in mind for how you’ll use your financing, as this decision can affect the type of lender and the loan product you need. Some possible areas you might be requiring financing for include:
- Farming, livestock or other agricultural use
- Building a home
- Long- or short-term investment, or diversifying investment portfolio
If you’re just starting or growing a business, consider your business type – the crops you’ll grow, the climate and location you’ll need, and the costs and time it’ll take to grow the crops you have in mind.
In the early stages of your process, create a business plan or concept to assess the financial impact of your business. Assess the local business climate, and use sample business plans if needed. This can also help you qualify for loans in many cases.
A good marketing plan is vital for any farm business. You need to include your products, their pricing, how they’ll be sold, and ideas for advertising them.
From here, your next step is getting pre-approved for financing. Waiting too long here could put you in a rough spot, as federal farming loan cycles can take a while in some cases. Make sure you’re on top of this in advance.
Down Payment Savings
This is a step you should be taking well in advance – saving for a down payment is vital. Different lenders have different requirements here, but we can give you a basic list ahead of time so you have a good idea.
Searching For Land
From here, you’re ready to begin your actual property search. There are numerous resources available to you here, first and foremost our farm loan professionals. Call us at Farm Mortgage Loan today to learn more.