How do Ranch Loans differ from other Ag Loans or Residential Loans?
No matter if you are expanding your operations or just entering the industry, the biggest obstacle is creating a realistic budget that will give you the best chance for success. This is why having a lender who understands ranch loan budgets is a crucial element.
Ranch expansions are often bought in areas with large amounts of land, frequently in a different location from where the borrower has set up shop. With the added strain of navigating a new area, determining how many animals a property can support can become difficult. Similar to farm operations, ranchers need to consider vegetation, forage, soil, precipitation, and more factors that lenders traditionally do not review because there is no crop production. An expansion or new ranch would typically require the purchase of additional livestock to make the property profitable.
Developing a realistic budget that includes these elements can be tricky, especially due to livestock price fluctuation. You will want to make sure that you have a loan that can cover the purchase of your animals as well as the added cost of feed and other associated ranching expenses. The key to success is having a proper structure of your finances during the initial part of a new operation while having the ultimate goal of seeing the soonest possible return on investment
When working with a ranch loan lender, look for someone who will:
- consider costs required to Invest in new livestock
- consider costs of livestock production
- understand all aspects of your ranching operation
- understand the length of time needed to see net profits and structure financing accordingly
Ranch loans require flexibility, especially in payment options, repayment periods, and debt consolidation options, which are typically not available through standard mortgages.
Every year can be different for your ranch operation as livestock sales prices fluctuate annually. Working with a ranch loan lender that knows what drives costs and how to facilitate your ranch allows you to choose the best loan product to suit your needs long-term, and have the support you need in unforeseen circumstances.
Farm Plus Financial has experience working with:
- dairy farmers
- registered cattle operations
- commercial cattle operations
- cattle brokerage operations
- feedlot operators
- finishing lot operators
- breeding and production facilities
Many of these operations work hand in hand, creating some of the best ranching operations in the nation. We understand the intersection of these facilities and can provide lending for large, multi-functional ranching operations, as well as small commercial programs.
Ranch loan varies from person to person, which is why we offer a wide variety of loan products to choose from. We understand that one size does not fit all when it comes to ranch financing, and each case is thoroughly analyzed to provide the best solution. We believe that understanding the customer, the operation, and the goals is key in providing the best possible financing.
For example, grazing operation needs like cattle or sheep are going to differ widely from wild game ranches. Facility costs and infrastructure are some factors that also must be considered at the client level. Using a lender, like Farm Plus Financial, that fundamentally understands all the aspects of these operations will make the lending process easier, and set you up for financial success.
Our ranch loans must be secured with agricultural real estate and be a minimum of $200,000. From beginning farmers and ranchers who are eager to get started in the industry to experienced ranchers who are looking to finance a new operation or expand their existing farm, we offer a wide variety of options, including lines of credit that can help pay for livestock, equipment, and farm improvements and operations. Most of our ranch loans offer no prepayment penalties, allowing refinancing for shorter-term debts into longer-term programs.
Farm Plus Financial is proud to offer some of the best ranch and farm loans in the nation. We have a wide variety of loan products that we customize to fit each borrower’s unique situation. From ensuring farm ownership loans to helping you refinance your existing loan for your family farm, our direct loans that have a low-interest rate got you covered.
If you’re ready to get started on your ranch loan, we’re here to help. Contact us today to learn more about our products and how we can help you finance your next project.
What People Are Saying
Extremely pleased with Farm Plus Financial. Aaron and Nina were completely amazing, excellent communication, timely responses and a sincere desire to do everything possible to make the loan a reality. Can say without hesitation that the level of service and professionalism Aaron and his team have provided us was truly outstanding.
Rob Murry and Farm Plus Financial deserve a five star rating for their excellent work in refinancing our California Central Coast cattle ranch. We found their pricing to be totally reasonable and their service to be excellent. Most importantly, they lived up to all their promises and made the paperwork flow and closing simple.