The right farm loan can be the difference between creating a profitable business and losing money on your venture, but the realm of farmland financing isn’t always easy to navigate. There are plenty of myths and misconceptions that make it difficult to focus on what’s important—finding a financing option that supports your specific business needs. Don’t let misinformation keep you from taking this important step for your business. Explore the truths behind these common misconceptions about farmland financing.
Farm Businesses Are Only a Perceived Risk
You can’t get far in the world of farm financing without hearing something about the inherent risks of the industry. Some people think this is an exaggeration and that it’s only a perceived risk that keeps banks and other lenders from providing farm loans.
The truth is that the agricultural industry is extremely volatile. The price and volume of commodities fluctuate frequently, which means businesses never know how profitable a season will be. Moreover, complications like poor weather, natural disasters, or infestations can wreak unexpected havoc on a farm. All of these challenges make farming—and, subsequently, farm lending—a risky business.
Farm Financing Is Only for Land
If you think about a farm loan, the first thing that comes to mind is probably the farmland itself. This is certainly a common use for agricultural financing, but it’s not the only way you can spend your money. In fact, many farm loan borrowers don’t even deal strictly with farming or ranching. Agricultural loans can go toward a wide variety of businesses, including hobby farms, vineyards, greenhouses, and fisheries. In addition to purchasing land, you can use the money to cover the cost of equipment, supplies, livestock, and so much more.
Farmers Can’t Find a Good Deal on Loans
With so much risk and competition in the industry, it’s easy to believe that an affordable loan is out of reach. Fortunately, this is simply another misconception about farmland financing. With the right farm lending specialist on your side, you can apply for a flexible, affordable loan that gets you the resources you need to make your business a success.
Are you looking for an affordable farmland loan with competitive rates, transparent pricing, and a hassle-free approval process? Let Farm Plus Financial help. We’ll work with you from start to end to make sure you have a loan that provides you and your business with what you need to succeed.