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June 5, 2024

Using Land as Collateral for Your Farm Loan  

Learn how to safeguard your legacy when leveraging land as collateral. 

Land equity loans provide farmers and ranchers with the opportunity to leverage an existing asset and scale their agribusiness. If you’re a rural landowner, you know as well as us that land is your most valuable asset and must be used wisely to build long-term financial success.  

Whether it’s been in your family for generations or you’re blazing your own path of ownership, AgAmerica is leveling up the way rural land financing is done to provide capital and counsel that keeps farmland in the hands of American families for generations to come.  

Throughout our years of navigating both the financial and ag markets, we’ve learned a thing or two when it comes to farm finance. Farmers need a lender who can provide more than surface-level transactions, but who can also bring transparency and sophisticated expertise to guide their operation towards financial freedom. 

So, when it comes to using your land as collateral to scale, here’s what you need to know.  

Frequently Asked Questions for Lenders Who Accept Land as Collateral 

Why should I use land as collateral instead of crops or equipment?  

If you want to set your agribusiness up for long-term success, long-term debt secured by long-term assets is an intuitive fit. By pledging land as collateral, you will unlock more flexibility regarding loan terms including lower interest rates and longer repayment terms, making it more suitable to carry larger loan amounts for extended financing periods. Because land is a long-term asset, land loans also require fewer check-ins with your lender than loans secured by crops or equipment, if a more hands off approach is preferred.  

What happens if I experience financial hardship? 

This can vary by lender. At AgAmerica, our primary goal is to provide a financial structure that aligns with your current needs and sets you up for long-term success. That’s why we offer a range of potential solutions that can assist you if adverse events occur. Our unique blend of products and wide credit spectrum equip us with a variety of tools to creatively structure financing packages or adapt to changes in your business. To proactively leverage these tools, timely communication is key should your financial circumstances change so we can help you get back on track.  

Is my house included in the collateral if I live on the property?  

If you live on the property used as collateral, it is typically included as part of the collateral, unless the parcel of land where the house is situated is explicitly excluded. Rest assured, our team values full transparency throughout the loan process and will work closely with you to address any concerns and ensure the terms meet your specific needs.  

AgAmerica Land Equity Loans in Action 

But don’t just take our word for it, see how landowners across the nation are using land as collateral for their farm loans and building more resilient operations.  

Land Purchase 

Read how this fruit orchard operator used a $60MM custom loan package to expand their operation, plant 50 acres of new trees, and increase profitability.  



When this young farmer wanted to add a processing facility and enhance his operational resilience through vertical integration, learn how AgAmerica equipped him with the resources he needed to make it happen. 


Emergency Funds 

On the verge of selling their land, read how these organic apple growers recovered from a tight financial position by instead using land as collateral to secure a $18MM alternative land loan.  


“AgAmerica has an experienced team that truly understands agricultural financing. They take a customer-first approach and customize loan programs based on your individual needs.” 

Mike D., Florida Rancher 

Safeguard Your Land and Legacy with AgAmerica

As a trusted financial partner for farmers and ranchers across the nation, AgAmerica is on a mission to provide the American farm with the financial support they need to keep American agriculture in the family for generations to come.  

With many of our financial experts coming from farm backgrounds themselves, we want to help you effectively leverage your land and invest in your operation’s future. Click the link below to learn more about our spectrum of financing solutions. 

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AgAmerica Lending® LLC is a licensed mortgage lender. NMLS ID# 372267
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