What Happens During A Loan Closing?

Here’s an understanding of what takes place during a loan closing for an agricultural land loan.

So, you’ve been approved for a loan. You’ve done everything you needed to do—provided all the necessary information and worked with the lender to agree upon terms for your land loan. As you transition into this final stage of securing the loan, you might be wondering what happens next. The closing period is a very important time, both for you as a borrower and for the lenders themselves. There are several factors that can affect how long it takes to close on a land purchase, so understanding what to expect during the loan closing stage is important.

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How to Qualify for a Farm Loan When You Have Bad Credit

Your credit score matters—but it shouldn’t keep you from securing the financial support your farm needs.

There are many reasons that you may need a farm loan. Perhaps you want to expand your operation by purchasing more land, or maybe you need to invest in new technology to optimize your production capabilities. Whatever the case may be, it’s likely that at some point your operation will need more working capital to sustain the fast-pace demand of food production.

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Cotton Crop Yield Expected to Fall Below Average

Cotton crop yield in Southeast regions – Georgia, Alabama, and Florida – is projected to fall short of previous yield forecasts. But how short? Is it enough for cotton growers to worry?

So far, there is not a concrete answer in response to the yield question. However, while an actual yield prediction has not been ascertained, it is still enough to cause many cotton growers to worry.

What’s the culprit for the probable low yield?

The uncontrollable: Weather.

Various environmental factors were working against the cotton crop this season.

Heavy rainfall prevented cotton growers from planting on schedule. Storms caused excessive fruit shed. Cooler weather stunted growth, even preventing some plants from maturing. Finally, excess moisture created a friendly environment for fungal proliferation.

To counteract this unanticipated fungal growth, cotton growers applied fungicide to battle the fungus causing target spot.

There is great debate on the extent that target spot impacts cotton crop yield. While target spot is perhaps a factor resulting in this year’s projected low yield, heavy storms, which knocked off many plants, are probably the more likely explanation for low cotton yield.

While some of the cotton is still prospering (resulting from late planting), it is quickly running out of optimal 60-degree weather days as the fall season is just around the corner.

As for the final yield assessment, growers will not know for sure until harvesting is complete.

The good news? The cool, wet conditions may allow dry-land cotton to do well compared to previous years.

Are you a cotton grower in Georgia, Alabama, or Florida? If you’d like to discuss your farmland financing options – including agricultural loans and ag farm credit – contact Bankers South Lending & Finance, LLC.

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