Jonesboro, AR – (JonesboroRightNow.com) – Jan. 28, 2024 – Whether you’re just starting to build your farm or have years of experience, there are all types of loans designed specifically for farms to apply for. The question is, which loan, or loans, are right for you?

At Farm Credit, we understand that applying for different farm loans can be overwhelming, so we’ve broken down common types of farm loans and whether or not they’re best for your operation.

Farm Real Estate Loans:

At Farm Credit, we offer three types of agricultural loans: real estate, improvement, and real estate loan refinancing. If you’re looking to expand the amount of land you have to farm or want to get your first bit of farmland, we recommend applying for one of these.

But what if you’ve been in the business for a while? Or, you have the space to farm, but the equipment you use needs upgrades? Look no further than one of our farm improvement loans. Use these to enhance and renovate existing structures on your land. We recommend that you pay these loans back in at least 10 years.

We also offer farm loan refinancing. This allows you to rework any existing agricultural loans or combine real estate loans into just one loan. You can live on land purchased with a farm real estate loan, so long as it makes up less than 50% of total loan proceeds.

These loans require land as collateral. This can be land you’re purchasing, already own, or a combination of both.

Farm Improvement:

Technology is always changing, and you always have new ideas to enhance your farm. That’s where a farm improvement loan comes in. Use money from this type of loan to purchase new farm assets, such as grain bins, buildings, fencing or field tilling. However, you couldn’t use it to buy something like a chicken coop (more on those below).

Livestock Loans:

We go further than just agricultural loans. If you’re looking to expand your herd, flock, or anything else, we’ve got you covered. In addition to buying animals, you can also use a livestock loan to purchase equipment, seed, feed and any other supplies related to livestock farming.

These are used for domesticated animals that produce labor and/or commodities, such as wool, meat, milk, or eggs. For example, you could use this type of loan to buy a new flock of chickens, but you couldn’t use it to buy dogs to breed.

Farm Equipment and Personal Vehicle Loans:

A farm equipment loan is a short-term loan, designed for rolling farm machinery. Think tractors, combine harvesters, and balers. You can also use this type of loan to get any attachments or implements you use to plant, maintain or harvest crops.

We also offer personal vehicle loans. These are not the same as farm equipment loans, instead, you would apply for this type of loan to purchase a full-size work truck, a car for the family, or your child’s first car.

What Do I Need to Apply for a Farm Credit Loan?

At Farm Credit, we make it easy for you to apply for whatever loan you need. Just make sure you have your legal name, physical address, date of birth, social security number, and farm and other income on hand when you apply. You can apply online in as little at 15 minutes.

Any loan up to $150,000 submitted before 1 p.m. CST Monday through Friday, excluding holidays, can receive same-day decision. If you apply for a larger amount, you may have to provide more underwriting and might not get a same-day decision.

However, once we make a decision, one of our knowledgeable representatives will contact you to discuss loan closing and funding timelines.

For more information, contact Farm Credit Mid-America at 800-444-FARM.