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.