News - Farm Mortgage Loan

Differences Between Farm and AG Loans

March 2, 2018/in Uncategorized /by Chris Siebeneck

At Farm Mortgage Loan, we’re thrilled to be a top resource when it comes to securing all types of farm loans for you and your family. Whether it’s to buy new land, build new facilities, or improve some part of your system’s efficiency, we have loans that can help.

While they’re generally for the same kinds of people, many don’t realize that our farm loans and agricultural land loans (or AG loans) are very different things in reality. What are the important differences here, and when should you be favoring one over another? Let’s take a quick look.

Farm Loans

Farm loans are a generally broad category that includes a few different things. They’re usually paid out over a period of 25 to 30 years, and will be taken out to help with any purchasing or refinancing of agricultural producing property. They can also include things like operating costs for areas like seed purchase, fertilizer restocking, or anything that the farm business needs to establish a growing crop.

In addition, farm loans will cover all payments toward machinery required as part of farming operation. They can also be used to pay living expenses during the period before a given crop has been harvested.

Agricultural Land Loans

Agricultural land loans, on the other hand, are reserved only for the purchase of real estate that will specifically be used to produce farm products. AG loans are also used to refinance long-term loans. They are required to only come on properties that produces agricultural products – just because you have a property with large acreage doesn’t mean you can get an AG loan unless you actually have crops growing on the land as well. Rates for AG loans are usually competitive with other commercial loans.

For more on the differences between important types of farm loans, or to learn about any of our services or offerings, speak to the pros at Farm Mortgage Loan today.

Aspects of the AG Loan Process

February 12, 2018/in Uncategorized /by Chris Siebeneck

For those in the agricultural and farming business who may or may not deal with animals, there’s a high chance you’ll require some kind of agricultural finance at some point along the line. There are several types of AG loans out there, including for farmland, livestock and many more.

At Farm Mortgage Loan, we’re here to help. We helpline clients up with the best farm loans for their particular situation, with experts who have years of experience in the field. Here are a few aspects of the agricultural loan process you should consider if you’re thinking of applying.

Have a Business Plan

Whether you’re a current farmer or a new farmer looking to break into the industry, it’s important to have a detailed and thorough business plan before you consider AG loans. Your business plan should highlight your current financial status, as well as future cash flow forecasts and any major expected changes.

Doing this allows a lender to take careful stock of your finances and determine what sort of loan amount you require – as well as what sorts of amounts you seem likely to be able to pay back on time. Being able to present the best picture possible here raises your chances of getting the best loan.

Term Details

Different organizations offer different rates and least loan amounts, so be sure to do your research in advance. Figure out minimum amounts, installment periods, lending terms, marginal payment options and more. There are simple tools online to then help you analyze the information you receive and determine which deal is best for you.

Know About State Programs

Most US states offer basic agricultural finance programs, and certain smaller in-state programs will usually offer additional programs as well. Be sure you’re up to date on these programs – this is where our experts can help.

For more on agricultural loans and the factors involved in getting them, or to learn about how we can help, speak to the pros at Farm Mortgage Loan today.

Important Agricultural Finance Factors

January 12, 2018/in Uncategorized /by Chris Siebeneck

At Farm Mortgage Loan, we’re proud to be a top provider of agricultural finance options in Utah. We have over five decades of experience in this area, and we take pride in our high level of service and our excellent rates.

We’re so confident in our services, in fact, that we encourage our clients to do their due diligence and shop around when looking for farm credit loans and other financing options. Here are a few criteria you should be considering before applying for a given loan.

Business Plan

Whether you’re a current or new farmer, or even if you’re any other kind of agriculturalist, the first step to take before applying for a loan is setting up a detailed business plan. This plan will highlight your current finances plus look to the future, projecting cash flow for a set period. It will allow the lender to see how much loan capital you’ll require to complete the goals outlined, and will also help give a strong indication of your creditworthiness and how capable you’ll be of paying the loan back.

State Finance Programs

Most states offer a few specific state-funded agricultural finance programs. These can range from short-term land loans all the way to disaster recovery loans, equipment loans and more. Speak to our experts about whether you’re eligible for any of these programs.

Loan Terms

Every lender will have their own specific rates and least loan amounts, and it’s best to look at factors like installment period, lending terms, marginal payment options and more before making your decision. There are many online tools for assessing the combined quality of a loan given these factors.

Commercial Lenders

While they aren’t necessary populous, it’s worth checking the offerings that commercial lenders and banks put forth within agricultural finances. Be careful here, however, as these loans aren’t offered by folks who specialize specifically in this area.

For more on the factors to look for in agricultural finance, or to find out about any of our farm loan options, speak to the pros at Farm Mortgage Loan today.

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