When Should I Contact An Ag Lender?
Ag lenders act as financial support for people operating an agriculture business in rural areas, assisting in the form of loans, farm cash management, and life/disability insurance.
An ag lender can help support your farm and ensure it remains successful. But how will you know when it’s the right time to contact one?
WHEN AN AG LENDER CAN HELP
Some instances where it’s wise to contact an ag lender include: If You’re Getting Your Business Off the Ground
Most start-up businesses need to contact an ag lender. After all, starting a business can get expensive! In most cases, they require more money than the average person has on hand.
This applies to farmers and ranchers who need access to:
● Seeds
● Land
● Equipment
● Materials
If you don’t do your research and you fail to contact an ag lender, your start-up may take a long time to grow — or it may end up failing.
If you want to make income from your farm within the first five years of implementation, you need to make a big investment upfront, and that usually requires help from an ag lender.
Our lending team is complete with experienced and knowledgeable lenders who understand the farming and financial industries. We’re here to give your business the best launch possible.
If Your Business is Struggling
Farming is tough. Even once you successfully get your business off the ground, it can be difficult for that success to remain consistent over time. The fact of the matter is that most people will struggle at one point or another — that’s just life.
Farming comes with fluctuating consumer demands, slim margins, and complex regulations, so it’s no wonder that financing can be tricky. To make the smartest financial decision for your farming business, contact an ag lender before things start getting dicey.
Lenders understand national and local farm market trends, farming practices, climate conditions, and financing options. When you’re armed with the experienced input that they provide, you can make the most informed decisions for your farm.
When Your Business is Thriving
Your ag lender acts as your partner — they’re there for you through the bad and the good. When your farm is doing great, that line of communication with your ag lender should stay open.
Continually seeking out input and advice from your lender maintains the relationship you have with them, meaning they have all the information they need, along with rapport with you, to be there when the going gets tough.
Moreover, when your business is successful, you might start thinking about growth. That could mean hiring more employees, expanding the business by buying more land or acquiring other farms, or increasing production. It could also mean updating equipment, especially if you have equipment that’s old and outdated.
When your farm has a little more money than usual, there are more opportunities for growth – and that’s great news! But even with well-lined pockets, most farmers prefer to use loans to pay for major upgrades, expenses, and expansions. An ag lender plays an active role when a farming business is thriving by helping farmers secure and manage their loan(s).
During Succession Planning
Farmers know that their farm will eventually change hands. When it’s time for the current generation to start slowing down, or the upcoming generation is ready to start getting involved, your ag lender can be a great help in organizing your succession plan. After all, succession is a financial transaction. Your ag lender can make sure that you have the right funds and financing options during the transition.
If You’re Structuring Your Farm’s Goals
Whether you’re just starting to form an idea of your farm’s goals or shifting your focus, you need an ag lender in your corner during the process.
Since ag lenders’ knowledge is highly specialized, they are capable of working with all sorts of farmers, ranchers, and individuals in rural areas with different types of goals. They understand the profession as well as the financial assets that it can benefit from. Working with an ag lender ensures you choose the loan that suits your goals best.
At Interra, our ag lenders can explain Operating Loans, Intermediate Loans, Farm Mortgages, and INtime Agribusiness Loans.
If You Have Questions About the Process
As a farmer or a rancher, you’ll often have specific and complicated questions regarding lending options. Ag lenders have what it takes to help you understand the solutions available.
Ag lenders also have the knowledge required to answer your questions surrounding commodity prices, future predictions, the value of farmland, and finance-related specificities like interest rates and down payment requirements. They’ve got it all!
IS IT TIME?
If now sounds like the right time for you to contact an ag lender, Interra has the resources you’re looking for. Give us a call at 574-534-2506 or schedule an appointment online to get started. We look forward to hearing from you and helping your farm grow
