Addressing Ag Loan Challenges for Florida Farmers Amid Land Scarcity and Rising Costs
The increase in commercial development has had a significant impact on the availability of agricultural land in Florida. As the state continues to grow and urbanize, more farmland is being converted into commercial and residential developments.
This has led to a decline in the amount of land available for agriculture, as well as increased competition for the remaining agricultural land. A recent article by Gulf Shore Business reports southwest Florida annual agricultural acreage declines of about 2% each year over the past 10 years.
One of the main drivers of this trend is the state’s rapidly growing population and economy, which has led to increased demand for land for residential and commercial development. In addition, some developers see agricultural land as a prime location for new urban developments due to its relatively flat terrain and proximity to major roads and infrastructure.
Farmers and ranchers in Florida are facing several challenges when financing agricultural land due to increased commercial development in the state. One of the main challenges is the rising cost of agricultural land, which has made it more difficult for farmers to secure financing. As commercial development continues to increase, the demand for land also increases, driving up the price of available agricultural land.
“Farmers and ranchers are in need of quick capital and accelerated loan approvals in order to compete with the aggressive cash market,” notes Robby Frantzis, Conterra Florida and Southeast relationship manager. “Conterra provides this through Conterra Ag Premier, as well as other scorecard programs.”
Another challenge is the tightening of credit requirements by traditional lenders. As the risk associated with agricultural lending increases, many lenders have become more cautious and may require higher credit scores or larger amounts of collateral to secure loans. This can make it difficult for farmers, especially those with smaller operations, to access the financing they need.
The impact of commercial development on agricultural land in Florida is a complex issue with no easy solutions. However, Conterra is a private agricultural lender that offers ag financing options designed to meet the specific needs of farmers and ranchers.
Here are 4 ways Conterra addresses the challenges farmers are facing in Florida:
- Flexible loan terms: Conterra offers flexible loan terms that are customized to fit the specific needs of each borrower. This includes longer loan terms or seasonal payment schedules that align with the cash flow of the operation.
- Competitive interest rates: Conterra offers competitive interest rates that are designed to help farmers and ranchers manage their debt and remain financially stable.
- Streamlined application process: Conterra Ag Premier offers a more streamlined application and closing process for well-qualified applicants, which can save farmers time and make the financing process less stressful.
- Working with distressed borrowers: Conterra has the capabilities and the capital to work with borrowers that have had some stress and may be considered a troubled debt at another lending institution. Our alternative lending program offers solutions then traditional lending doesn’t fit.
“Conterra has a competitive advantage through our quick, common-sense lending decisions as long-term competitive rates,” continued Frantzis. “Our ability to customize loan structures, as well as to be extremely efficient, sets us apart.”
By offering tailored financing solutions, competitive interest rates, and a streamlined application process, Conterra works with farmers in Florida to access the capital they need to grow their businesses and navigate the challenges of commercial development.
Conterra Ag Capital focuses exclusively on agriculture, providing traditional farm and ranch loans, development and alternative lending to America’s farmers, ranchers and agribusiness. With regional lending experts like Robby Frantzis, Conterra has flexible ag loan options available to meet the needs of producers.
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.
Source: American Farmland Trust
