When it comes to getting a farm loan, the requirements can vary depending on the purpose of the loan. Whether you’re a seasoned farmer or just starting out, understanding the requirements is crucial for securing the financial support you need.

Common Types of Loans:

Operating Loans

  • Can be used to purchase livestock, seed, and equipment.
  • If a farm is new and up-and-coming, the operating loan can also be used for family living expenses and farm operating costs.

Farm Ownership/Real Estate Loans

  • Can be used to purchase/expand the farming operation - for example, paying closing costs, construction, updating buildings, and conserving/protecting soil and water resources.

Emergency Loans

  • These types of loans are used to help farmers recover after a physical loss, like droughts, floods, or other natural disasters.

Beginning Farmer Loan Program

  • We collaborate with the Farm Service Agency to offer Beginning Farmer Loan Programs, ensuring competitive interest rates and expert guidance, making it possible for beginning farmers to embark on a farming career.
Requirements for a Farm Loan Application Lender Requirements
Farm Business Plan Credit Report
Balance Sheet Debt Service Cover Ratio
Income Sheet Debt to Asset Ratio
Three Years of Tax Returns Net Worth
Financial Project Current Ratio
Loan-to-Value
Collateral

Conclusion:

BankIowa hopes this information has given you an idea of what you need to start your financial journey in securing a farm loan. If you would like to meet with a BankIowa Ag lender today, contact us here!