BankIowa
Updated Mon March 18, 2024
Published Under: Ag
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!
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