As an agricultural lender, Conterra understands the importance of developing a long-term ag financing plan for the growth and expansion of your farm and ranch operation. It may seem intimidating, but creating a financing plan can be simplified by following a few simple steps.
Assess Your Current Financial Situation
To develop an ag financing plan that fits your specific needs, you must first assess your current financial situation. Analyze your income, expenses and debt to determine the type of financing that would be most appropriate for your needs.
Set Goals for Your Operation
Next, set specific, measurable and realistic business goals for your operation. These goals could include expanding acreage, investing in new equipment, diversifying crops, or exploring new markets. Establishing goals will help you determine the amount of financing you require and the most suitable terms for your operation.
Identify Financing Options
There are a variety of financing options available for farmers and ranchers. These options range from traditional bank loans to private ag lenders and government programs. Consider interest rates, repayment terms, and eligibility requirements for each option to determine which works best for you.
Develop a Long-Term Ag Financing Plan
After analyzing your financial situation, setting clear business goals, and identifying financial options, it’s time to develop a long-term ag financing plan. Your plan should comprise of the amount of financing needed, loan terms, and how you intend to repay the loan. Factors like interest rates, cash flow, and potential risks to your operation should be considered when creating your plan.
Review and Adjust Your Plan
Your financing plan should be reviewed regularly to ensure it still meets your needs and goals. If your financial situation or goals change, make adjustments as necessary. Reviewing your plan periodically will help you stay on track and make necessary adjustments.
Developing a long-term ag financing plan is important for growth and expansion of your farm and ranch operation. By assessing your financial situation, setting clear goals, identifying loan options, and developing a long-term plan, you can position your operation for long-term success. It’s essential to seek advice from experienced agricultural lenders to create a financing plan that meets your specific needs and goals.
Conterra Ag Capital has a variety of ag financing options available for to fit the many needs of American producers. Regional loan officers are available to answer your questions regarding the variety of agricultural loans available. Find your Conterra relationship manager here: Find an Ag Lender – Conterra Ag Capital
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.
