Farmers are our business. Farming is a very exciting lifestyle, yet offers many challenges- including financing.
Cash Flow, new equipment, used equipment, land, livestock - where does all that money go? Let us (and our computer) help track your farm's progress, map your future plans and determine an optimum level of debt financing.
By tracking your annual change in your net worth we can see how much money your farming operation has improved each year. Your net worth is often an indication of profit. If it isn't improving you're not making money, spending too much personally, or maybe debt payments are too high. If it is declining for a number of years you will need to make some changes to your operation.
Your cash flow projections that we do are very important. Farmersí income is sporadic and it is extremely important to manage your inflow and outflows. There are many options for financing your operating costs: Credit Union Line of Credit or Short Term Operating Loan, Grain Companies, Fuel Companies, Fertilizer and Chemical dealers, or Seed Growers. It is quite simple to defer the costs of your crop but check out your cost of borrowing - what do those deferred inputs mean in lost discounts? It is good advice to work hard at your operating costs and pay for this year's inputs from last year's crop. If there is a crop failure this year your cash flow will be affected but not as much as if you had deferred all your expenses. If input costs are extremely high, the cash discounts and early purchases for tax purposes will make this idea worth pursuing. If we do experience a crop shortage you are far more prepared and will only have one year's inputs to worry about.
Based on previous year(s) actual costs and your projected future costs, our farm plan allows you to determine how much you will actually need for operating credit. Various options are available to cover short term needs.
The most important factor is the bottom line. How much money do I have? How much can I spend? How much should I, or can I, spend on daily living? What debt payments can I afford? By looking at past trends and your projected amount available for debt service we can determine an optimum level of annual debt payments for you. This would include a residual, or margin that will leave some room for "circumstances" - like variations in price, yield, or costs.
To qualify for a loan we need to know as much as we can about you. This not only makes the application for a loan much simpler, but enables us to help you structure your finances to best suit your needs.
Complete prospective financial information:
When applying for a loan please bring some important things:
Our excellent staff strive to provide superior service to our members. After we receive all your information the maximum time for approval is 5 days. Most agriculture loans will be approved within 2 days. All approvals take place within our branch structure.
Available coverage depends on the loan you acquire. Ask your credit union for more details.