Agriculture Loans

In smaller rural areas farmers rely on agriculture loans in order to finance certain activities and their operations.  Despite the fact that these only comprise 1% of all bank loans, small, rural banks use roughly 6% of their assets in order to finance these loans.  In most cases, these loans are seasonal in nature and farmers will use the proceeds from them to purchase feed, fertilizer, livestock, and seed.  Suffice it to say, these smaller, rural lenders are well acquainted with the agriculture and farming industries.

Understanding Agriculture Credit

There are a number of credit instruments that can be used to provide farmers with the funding they need including:

  • agriculture loans
  • banker’s acceptances
  • bills of exchange
  • loans
  • notes

These different types of financing can be tailored to address the specific needs of the borrower, most of which are determined by harvesting and planting cycles as well as marketing campaigns.  Short-term loans finance their daily operations, intermediate-term loans go towards farm equipment and machinery, and long-term loans are used for purchasing additional properties.

Biz4loans specialize in providing loans for rural, agricultural customers and have access to a wide range of loans (as well as leasing services) for dairies, new crops, orchards, timber, and wineries.  Our specialists are knowledgeable of how your industry is in a constant state of change.  So the agriculture loans that we have access to are very flexible and were designed specifically for your industry niche in order to meet your financial needs.  Whether you are purchasing land for construction or production, installing irrigation systems, or need to cover your accounts receivable, we can tailor a loan to meet your needs.

There are 4 types of agriculture loans that Biz4loans can customize in order to address your needs and the needs of your business:

  • farm equipment loans and lines of credit
  • loans for the purchase or the refinancing of real estate
  • long and short-term loans
  • specialty loans for smaller farming concerns

Closing on agriculture loans typically takes about 4 to 6 weeks and the interest rates start at prime plus 2.95%.  Depending on the individual farmer’s specific needs the allowable Loan-to-Value (LTV) is between 75% and 85%.  Finally, the underwriting of these loans is based on the most current farm services credit guidelines.  Most importantly, there are no pre-payment penalties.

SBA Funding Agriculture loans

The USFSA (US Farm Service Agency) has access to federal, state and county lending network offices in order to administer and manage farm commodities, conservation, and credit as well as disaster loan programs.  Biz4loans can assist you in this area as well as the SBA is committed to the success of farming operations nationwide.  More information is available by contacting one of our representatives at (888) 943-1497 or by e-mailing us at|

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