Farm Operating Loans
Conterra Operating Line of Credit Program
The Conterra Operating Loan Program is designed to provide Operating Lines of Credit (LOCs) to farmers who farm federally insured crops. Conterra offers advance rates of up to 90% of a producer’s crop insurance guarantee and customers can use LOC funds for land rents, farm inputs, mortgage payments, and other farming needs as established in their approved crop budget. Conterra offers fixed rate LOCs to allow producers to hedge against rising rates. We offer competitive rates and terms and aim to provide the capital you need throughout the crop year.
A farm operating loan or an operating line of credit can keep your purchasing power strong, even when cash flow is limited.
- Fertilizer, pesticides and other inputs
- General operating expenses
- Land Rent
How does Conterra's Operating Loan Work?
The lines are non-revolving and on controlled disbursements are requested by the borrower up to two times per month, with funds being used to pay for budgeted expense items. Generally, the loans are due and payable after the crop season.
Do you charge fees for non-use or frequent cash draws?
No! We value our long-term relationships with our clients and recognize the importance of simple and straight-forward lending. You will never be charged a penalty fee for not using your credit line or for making a withdraw.
Do you require mandatory rest periods or paydowns?
There is no mandatory rest period. Paydowns are required as crops are sold, government payments are received, or crop insurance is collected. Conterra files an assignment on these proceeds and checks are joint payable to the farmer and Conterra.
What can I buy with an operating loan?
Any items in the approved crop budget, such as; seed, chemicals, fertilizer, fuel, rents, mortgage payments, labor, insurance, harvest costs, etc.
What is the difference between an Operating Line of Credit and a Revolving Line of Credit?
An operating line of credit can be drawn out to the maximum amount approved and is then paid down as the products securing the line are sold. As the line is paid down, it cannot be re-drawn. A revolving line of credit can be drawn up, paid down, and drawn back up during the term of the loan.
Apply For an operating loan today. Fast approvals.
FARM AND RANCH REPORT
Essential items should be on all producers’ minds: how will volatility in input and output prices affect the bottom line? What opportunities and challenges does this present?
Watching input costs, particularly in the labor, fertilizer, and fuel markets will be extremely important. No one size fits all, but managing expenses this year will be important, even with high, albeit volatile, output prices. In this Outlook, we provide more color and context to the essential questions above.