Wednesday, January 18, 2017

Making Farm Loans Work For You Today

By Sandra Hill


Farming is considered by many to be one of the most important businesses there is. These are the operations that feed and help clothe the nation. If we had to import the meats, fruits, and vegetables we eat every day, our diets would change drastically. As such, it is in everyone's best interest to make sure farming operations remain as stable and secure as possible. This means that the federal government must sometimes provide farm loans to make that happen.

Although most farmers try to avoid putting the acreage they own up as collateral for a loan, it is sometimes necessary. If they have a particularly bad year with drought or too much rain, their crop yield will not be what was expected. Sometimes farmers face several years of bad weather in a row which can put them in the position of having to borrow money against their land.

Sometimes an individual wants to get into the farming business but does not have the necessary capital to actually purchase the land and equipment necessary. This person can go to a lender with a business plan and apply for the funds to begin a farming operation. In order to be approved, the individual will have to prove to the lender that they have the expertise needed to make the operation a success.

A lot of times farmers, like other businessmen, need capital to expand. In this case, they can go to an institution and apply for an operation loan to assist them with the day to day operation of the business. They may be able to qualify for up to one million or more dollars to get the money they need to expand their business. For those who do not qualify for private funding, there are often loans of up to three hundred thousands dollars available.

Most farming operations require storage facilities for produce, livestock, and equipment. Farmers may not have the funds available on their own to build or buy storage units. If they are producing certain types of crops, such as wheat, soybeans, vegetables, fruit, corn, or peanuts, they can get financial assistance of up to half a million dollars.

Some farming operations depend on migrant workers to plow fields and harvest crops in season. The government regulates how these workers can be hired, how long they can stay, how much they have to make per hour, and how they are housed. If a farmer wants to improve the living conditions of these workers, funds are available for him or her to do so. They can even borrow money to buy furniture for the workers' houses.

For those who have commercial fisheries, there are loans available that provide for the purchase or repair of fishing boats. The federal government recognizes this business as one that is difficult but necessary. There are strict environmental guidelines that must be met however.

Many times people put food on the table without realizing what it took to get it there, but no one should underestimate the importance of farming businesses. The more successful farmers are, the healthier the economy and the nation is.




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