Financing the regular operating costs of your farm can be a challenge. Even when you can project costs, with the ever-changing nature of the industry, there are also some unexpected ones. In addition to unexpected weather or other crop issues that can require additional operating funds, other situations can arise that require immediate access to cash, ranging from opportunities to purchase land or equipment at a discount with the ability to complete the deal quickly and various other unforeseen situations which require cash on short notice.
When you want your financing options to be as flexible as the industry, specialized financing products kick in.
Farm Operating Loans
You’ve probably already dipped into some options. One that you may be most familiar with is farm operating loans. Many local banks have specialized loan products exclusively covering farm operations, like a direct farm operating loan. We can’t precisely review these products as a whole because the terms vary from lender to lender. However, some points they have in common are extremely frustrating to farm operators. Disadvantages farmers have encountered in them are the following:
- Annual visits to the bank
- Liens on crops & equipment
- Dealing with inexperienced loan officers
- Banks dictating your operations & financing
- Outrageous interest rates
Farm Equity Line-Of-Credit
The farm line of credit eliminates a traditional operating loan’s most common worries and setbacks. It is also perfect for periods with no income, but you want to grow or purchase and take advantage of discounts. At Janus AG Finance, our revolving equity line of credit is an industry leader.
If you want to improve operations and help your business grow, this can be the ideal loan product for you, regardless of the type of farm. Say you owned a vineyard and you wanted to make improvements not only on your crops but on your winery. Our equity line of credit can be used for farm and non-farm operations when business-related. Or say you wanted to expand bins and silos infrastructure for your wheat farm, you absolutely can too.
The equity line of credit can make your life easier. Here, we show you how our line of credit differs not only from farm operating loans but also how it is set apart from other LOCs:
No annual visit to the bank
While the operating loan requires annual requirements review and approval, you don’t have to do that with an equity line of credit. Moreover, you don’t even have to pay down your line annually. Once approved, you are given a 10-year draw period and a 20-year term mortgage period that you can pay down anytime.
Work with experts & competitive rates
Not only do we appoint you with expert appraisers and underwriters. As farmers and financing experts, we always have your best interests in mind and provide the applicable solutions for your needs.
More control over your operations
Perhaps you are getting the financing you need, but you may be losing control with a regular operating loan. When a bank decides to cut funding due to being purchased by other companies or any other reasons, you won’t get a chance to be prepared, resulting in huge losses for you.
On the other hand, once our operating line of credit is approved, it can’t be reduced or limited during the draw period.
No liens on crop and equipment
The downside of securing your loan with crops and equipment is that if you ever have a bad year when you have to reapply, your bank might not want to re-approve the loan. Every farm line of credit is different. For some revolving LOCs, they are secured by crops and equipment. For bigger non-revolving LOCs, they may be covered by crop insurance.
Our equity line-of-credit is based precisely on that, farm equity. Instead of crops, equipment, and livestock, it is secured by real estate. There will be no lines placed on them, so you won’t be limited on how you use these assets.
Apply For Janus AG Finance’s Line-Of-Credit
With Janus AG Finance, you can quickly obtain an equity line of credit. There is always a solution available to regain control of your farm finances. If you’d like to learn more about it, contact us today!