Loans for Farm Real Estates Some farmers have big acres of land while some have only a small piece of land. Some requirements are so urgent, and they call for urgent agri finance. This finance can only be acquired by taking loans that will help to meet the requirements of the farm. Some of the most common agriculture loans include: Crop production loans One of the most important loans that are available is the crop production loan. This loan focuses on seasonal borrowing, and it can be done for any crop. There is usually a maturity date for this loan. The maturity date mostly coincides with the sales of the crops. Thirty percent of the loan is the mostly used margin of payment. This can be met by equity in equipment, assignment of government payments, cash down payment or any other type of collateral. Livestock loans This type of loans also involves the cow and calf loans. It is designed for the purchases of the cattle. The loans of the farm real estate’s are structured in a
manner that farmers have to make annual payments. The date of the payment coincides with the date of the sales of the cows or the calves. The loans also offer renewable lines that are annual and an opportunity cover for any seasonal borrowing type. It also covers any need that the farm may need in an urgent way. The certificates of the borrowing base are the governing measures of the annual lines of credit. Twenty-five percent is the most common margin requirement in life stock. It is met by the cattle that the farmer owns, cash amount or equal collateral. Feeder loans Feeder loans are another type of farm finance. This type of loan is quite flexible. It can be structured according to the requirement of an individual. It can be used as a line of credit that can be renewed annually. The periodic base
certificates are the ones that govern the feeder loans lines of credit. Twenty- five percent is the most used margin loan requirement. The loan can be met by the cattle that the owner owns, a cash amount or equal collateral. Agribusiness Loans The loans for the agribusiness are used for creating the working capital. It can also be used to buy inventories that are required in an agriculture business and also equipment financing. These finances can be used a permanent need in an agricultural business and also a seasonal need. Grain facility loans This type of loan is focused mainly on grain storage and merchandising operations. This type of loan can easily be structured on the annually renewable line credit basis. It can also be structured according to the needs of an individual. This can include the specific grain contracts or even the specific merchandising needs. The margin claim depends on the type of the hedged good. The farmers can meet the margin requirements using the currently owned goods or even the existing goods. Agri finance has helped many farmers increase their farming investments. Talk to an expert to help you understand the best type of loan you can take for your agribusiness.