In agricultural real estate, some of the biggest problems don’t show up on a price sheet. They surface late in the process when financing questions collide with deadlines. Involving a lender earlier doesn’t mean committing to a loan. It’s about understanding what’s workable, what isn’t, and where constraints may exist before a property is under contract.
“The cleanest transactions I see are the ones where financing is treated as part of the planning process, not the final step,” shares Matt Manuel, vice president relationship manager at Conterra Ag Capital. Most ag land deals don’t fall apart because of price. They stall, or worse, fail, because something important wasn’t addressed early enough. Financing is often at the top of that list.
It’s common for lenders to be introduced only after a purchase agreement is signed. At that point, everyone is already working against the clock. Expectations are set, deadlines are tight, and flexibility is limited. While many of those transactions still close, they tend to be more stressful than they need to be. Others don’t make it across the finish line at all.
The strongest farmland transactions usually start much earlier, with lender conversations that happen well before a buyer goes under contract.
Why Timing Matters More Than Most People Realize
From a broker’s perspective, early lender conversations are about setting the right guardrails. When buyers understand their limits and flexibility ahead of time, offers tend to be cleaner, negotiations move faster, and credibility with the seller is rarely in question.
Talking with a lender early also helps spot potential problems before they threaten the closing. Issues like water rights, easements, ownership structure, tenancy, or zoning usually don’t come out of nowhere. They can often be seen early if someone is looking. Involving a lender sooner means these topics can be discussed while there’s still time and flexibility.
“Preparation doesn’t slow deals down,” said Manuel. “It usually prevents them from stalling later.”
Buyers benefit from knowing their options before they seriously start looking at properties. That includes having a general sense of loan structure, what payments might look like, how much cash they’re comfortable bringing into a deal, and how much leverage fits their operation. Having a lender they already know and trust, someone familiar with their situation, also provides a valuable perspective when a property becomes available.
For brokers, this level of readiness often makes the difference between a smooth deal and a stalled one. When financing conversations start early, clients move forward with fewer surprises, less stress, and more confidence. It also reduces the risk of a buyer missing out on a property simply because financing questions were addressed too late.
When Financing Enters Too Late
A recent land transaction in Oklahoma is a good example of what can happen when financing is introduced late and how preparation can still make the difference.
“When a lender comes in late, the question isn’t just ‘Can we close?’ It’s, ‘What do we have to give up to get there?’” continued Manuel. “That is when stress and risk increase for everyone.”
The deal involved a $1.4 million agricultural property that was already under contract. The original lender was unable to meet the required closing deadline, leaving both the buyer’s and seller’s brokers under pressure. Deadlines were approaching quickly, and the risk of losing the deal was very real.
Through an experienced referral partner, the transaction came to Conterra midstream. The timeline was compressed, stress and expectations were high, and there wasn’t much room for error. Conterra relationship manager Matt Manuel and the credit team moved quickly to assess the borrower, the property, and the loan structure. We focused on what mattered most to get the deal done. By staying disciplined and decisive, we were able to close the transaction on time.
Although it was tight, that deal closed successfully, but it also highlighted an important point. When lenders are involved early, pressure points are often identified well before they threaten a transaction. When lenders are brought in late, speed, flexibility, and a little luck become the only tools left.
Building Better Outcomes Through Referral Partnerships
Strong land transactions are almost always the result of strong coordination. That belief is what led to Conterra’s loan referral program, which we continue to build with land brokers and real estate professionals, including Keller Williams agents in several regions.
The program is designed to support, not complicate, the agent-client relationship. Agents are always encouraged to contact us directly to confidentially talk through a deal. “My strongest referral partnerships are built on problem-solving, not transactions,” advises Manuel.
We recognize that many agents already work with trusted lenders, and since those relationships matter, there is no expectation of exclusivity. “Our goal here is to be the go-to resource when a deal needs experience, flexibility, or a wider geographic reach,” shared Manuel.
In many cases, when a lender is involved early, potential problems are recognized, expectations are aligned, and fewer decisions are forced under a deadline.
Rethinking How Financing Fits into the Ag Land Deal
One reason financing conversations get delayed is the mistaken belief that all lenders approach agricultural land the same way.
Traditional lenders often have stringent geographic limits, standard rules, and few product options. That works for some properties, but agl land is different. Bigger acreages, special uses, out-of-town buyers, and changing ownership often need more flexibility.
Conterra was built to operate in that space. We lend across the country and structure loans around how agricultural land is actually owned and operated. That means applying real-world ag practices without losing credit discipline.
For agents and brokers, the more useful question often isn’t “Who has the lowest rate?” but “Which financing method best supports this deal?” Asking that question earlier may affect how smoothly a transaction moves from offer to closing.
A Different Wat to Think About the Agent’s Role
The most effective land professionals don’t just bring buyers and sellers together. They help manage risk, expectations, and timing throughout the process. Having early conversations with lenders is one of the simplest ways to do that.
It protects your clients and strengthens your credibility with sellers. And it reduces friction at every stage of the transaction.
“Real estate transactions are stressful by nature. Financing shouldn’t add unnecessary uncertainty to that,” concluded Manuel.
Agricultural real estate deals that close cleanly are built on preparation and candid communication, not last-minute problem-solving. To make the entire transaction more seamless for everyone involved, treat financing as part of the foundation of a land transaction, not the final step.
When you’re ready to support your deals with early lender involvement, referral partnerships, or flexible ag financing, we’re here to talk. Always a conversation, never a sales pitch. Start a conversation with your Conterra relationship manager to learn more.
Conterra Ag Capital is a private lender, focused exclusively on American agriculture. We offer a variety of specialized ag loans designed to meet the specific needs of farmers and ranchers nationwide. With a team of experienced relationship managers strategically located across the country, we provide regional expertise and personalized service to our clients. Whether you’re an experienced producer or new to the industry, Conterra is committed to supporting your agricultural endeavors. Our people, products, and process-driven approach to lending make us unique.
Disclaimer: Please note that the information provided in this article is for educational and informational purposes only, and should not be construed as financial or investment advice. While we have made every effort to ensure the accuracy and reliability of the information presented, Conterra Ag Capital and its affiliates make no representation or warranty as to the completeness, correctness, timeliness, suitability, or validity of any information contained in this article. You should always consult a qualified financial advisor, tax professional, or other qualified professional for advice on your specific financial situation.
