Ag Lending Q&A

Q. What is the role of agriculture lending companies?

A. Companies in this industry provide ag loans and other farm credit and farmland financing options to agricultural operations. Typical customers include crop and dairy farmers, ranchers, agribusiness owners, and timber producers.

Q. What types of farm loans do ag lenders finance?

A. Ag lenders cover all facets of farming, financing smaller blueberry farms to vast cattle ranches. Ag loan types include:

  • Loans intended to improve economic and environmental climate in rural communities. Funds may be used for buying a business to keep it from closing; purchasing land, buildings, machinery or equipment; and related activities.
  • Loan options for starting and operating farms and other agricultural businesses.
  • Loans to assist beginning farmers and ranchers who are unable to obtain financing from traditional lending institutions.
  • Loans to help producers respond to/recover from production and physical losses due to drought, flooding, other natural disasters, or quarantine.
  • Loans for expanding, enhancing, and reseting an agricultural business.

 

Q. Why is ag lending a strong, growing industry?

A. Farm and ranch lending continues to increase. In 2012, lending was up $10B with more than 3,600 jobs added by farm banks. Thus, ag lending companies play a large role in the success of farms and ranches both big and small. Why? Truth is, farming is risky business. Unforeseen setbacks and small windows of opportunity may arise that traditional lending institutions just can’t handle and support.

Ag lenders step in to help ag operations secure unique opportunities. What’s more, they step in to rescue farms from going under due to failing crops, unfavorable weather, decreased productivity, and fluctuating market prices. These risks – production and yield and price and market risks – and many other aspects of agricultural risk – lack of diversification and politics – all must be identified, measured, and actively managed in order to ensure the stability and success of an ag operation.

Q. What makes Bankers South Lending & Finance, LLC so special?

A. Our staff includes employees whose own farming histories stretch back generations. We have several ag lending professionals with backgrounds in farm, ranch, livestock, and farm operating lending. Bankers South also has its own experience with buying, selling, and managing agriculture land.

Bankers South has been helping farmers and agribusinesses in the good years and not so good years. It’s our commitment that we are not only offering a loan but a relationship that will hopefully tie Bankers South and your farming operation together for many years to come.


Water Quality Monitoring Benefits Mississippi River Basin Conservation Efforts

If you are a producer with agricultural land in Mississippi, listen up.

Mississippi farmers are coming together, merging efforts to enhance water quality and conservation of the Mississippi River basin. These merging conservation tactics are yielding promising results for the river basin. Studies have reported decreased loss of nutrients from the soil, such as nitrogen, phosphorous and animal manure, which regularly flow into neighboring, downstream waterways.

Bankers South Ag Lending and Financing offers various options for financing agricultural land to better assist Mississippi farmers with the implementation of solid conservation practices. These practices typically include nutrient management, conservation tillage, planting cover crops, wetland restoration, fencing animals out of streams, and tailwater recovery systems.

Not only do these practices benefit and protect neighboring water supplies, but they also work to benefit cropland, keeping soil and nutrients on the land where they belong. Developing a sound water quality monitoring or modeling plan significantly reduces the amount of nitrogen and phosphorous leaving the fields and decreases the amount of nitrogen and phosphorus entering the Gulf of Mexico. Too much nitrogen and phosphorous in the water can lead to serious environmental and human health issues, which directly impacts the economy.

All Mississippi farmers are encouraged to take a proactive step to preserve the basin and enhance the water supply. All producers can do their part to minimize the loss of nutrients and sediment, send cleaner water downstream, and protect the landscape and watershed. It simply requires the conscious fulfillment of an effective conservation strategy and system.

If you are a Mississippi producer with interest in fulfilling a conservation strategy, contact Bankers South for agricultural financing assistance. Allow us help you implement or improve your current conservation practices on your agricultural land. We offer Mississippi farm loan options to better support the continued success of your agricultural business.

 


Heavy Rain Effects Disease Management for Georgia Crops

As mentioned in an earlier post, a deluge of rainfall has rained down on Georgia. Not only is heavy moisture impacting plant growth, it’s also making disease management incredibly difficult for many of Georgia’s prime crops.

Soggy fields are creating an ideal environment to host certain bacteria and fungicides in peanuts, cotton, corn and soybeans. Plus, the moist fields are making it difficult for farmers to get in to apply necessary fungicide treatments. Even when they are able to treat the plants, the treatment sometimes gets washed away, resulting from another torrential storm. Crops are reaching a critical stage where timely use of fungicide application is paramount to effectively reduce the risk for bacterial and fungal outbreaks.

In these current conditions, the occurrence and proliferation of leaf spot diseases, white mold and Rhizoctonia limb rot can be expected in peanut fields. In fact, it’s been reported that white mold has already killed young plants on Southern Georgia farms. It doesn’t stop there.

Cases of southern corn rust have also surfaced, along with northern corn leaf blight and southern corn leaf blight. Though the damage isn’t too severe yet, it is still important to gain control over these occurrences before they become widespread. Aggressive use of fungicide treatment has proven effective against southern rust, but in these conditions, effective treatment becomes difficult. In addition, soybeans are at risk for Asian soybean rust and cotton is at risk for target spot and Ascochyta wet-weather blight.

To stay on top of these diseases, continue scouting your crop, keeping track of bacterial and fungal outbreaks. What’s more, hope that dry weather is on the horizon!

If you are a peanut, soy, corn, or cotton grower in Georgia, contact Bankers South Ag Lending and Financing to discuss your agricultural financing solutions. We offer Georgia farm loans to support your farm’s sustainability and continued economic success.  


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