Multiple Financing Options to Support Growth
Crop or Livestock Lines of Credit can be used to finance annual crop or livestock expenses. Crop or Livestock Lines of Credit are usually offered to seasoned farmers with proven experience, stable repayment ability and well-capitalized balance sheets. These Lines of Credit are generally short term (18 months or less), repaid through the sale of the underlying collateral and mature at the end of the crop production cycle.
Permanent Planting Development Loans are used to finance the development of land into mature permanent crops, such as fruit or nut trees that can require several years of care before profitable production begins. These loans typically include a period of some years during which the loan can be drawn upon to meet related expenses while the crop matures, after which the balance converts to a term loan. Of course, the farmer’s ultimate profitability of these long-term plantings is sensitive to volatile supply and demand; commodity price changes; and the normal market, weather and operating risks of agriculture. Thus, Permanent Planting Development Loans are usually backed by both the earning potential of the permanent crop being developed as well as by the current earnings of the borrower.
What you'll need for a Crop or Livestock Line of Credit or Loan:
- Strong projected stand-alone crop margins
- Demonstrate farm profitability and a strong financial and crop plan
- Three or more years of agricultural operations
- Proven historical cash flow
- Established personal and business credit history
- Keep your deposit account relationship with Tri Counties Bank.
Put the experience and knowledge of the Tri Counties Bank agricultural lending team to work for you.