Financing fundamentals for a farm or ranch business
Start your financial assistance search with your State Department of Agriculture to see if your state has a Beginning Farmer Loan Program or other type of grants or loans for farming and ranching.
Use the search bar at the upper right of the page to find information for your state (or the state where you wish to farm). Just type your state name in the search box.
Some State and Federal loan programs work in tandem with commercial farm banks to service agricultural loans. The nation's farm banks (defined by the Federal Reserve Board as banks that have above average proportions of farm real estate and production loans in their loan portfolios) offer a variety of loans to small and large farms and agribusiness firms.
The American Bankers Association has a "special section dedicated to providing advocacy, information, training, education, and public relations for banks that make and service agricultural loans or provide credit and other financial services to those living and working in rural America."
In addition to commercial banks, the Farm Credit System (FCS) also provides credit and related services to farmers, ranchers, and producers or harvesters of aquatic products. This network of federally chartered, borrower-owned lending institutions and related service organizations also focuses on serving the credit needs of young, beginning, and small (YBS) farmers and ranchers.
The U.S. Department of Agriculture's (USDA) Farm Service Agency (FSA) provides a variety of farm loan programs, including traditional operating loans, beginning farmer and youth programs. They also guarantee farm loans made by many commercial and non-profit lenders.
Understanding basic farm financial terms and concepts, how lender risks and bank covenants impact you, utilizing TOW strategies for better decision making, Assessing you credit worthiness, creating stronger financial partnerships, steps for a winning farm strategy
Mainly focused on agricultural loans, this publication reviews how an agricultural business plan, along with several other documents, can serve as an explanation of borrowing needs and repayment ability. The most important thing to remember is that the lender wants assurance that the borrower can repay the loan.