Financing for stockers?

[Grass-Fed]

Any advice on getting and useing financing to buy cattle for both short and long term plans?
I have done some reading and research on herd financing, I was hoping to get some advice from someone who was useing it.
What does the bank want from you?
Has the bank been lending less money in the past few years?
What kind of terms can I expect? (APR and time frame)
Is it even worth doing?

Grass-Fed

 

[tom4018]

Where are you at? That will help some with the answers.

Farm Credit does it some here, neighbor uses it all the time.

One of the Coops has some deals on it also.

 

[JSCATTLE]

I use the farm credit bank here. Only problem I've had is they don't have a clue about cattle . I bought some 3 year olds about 2 years ago this year when I renewed my loan the tried to make me pay more out of pocket by depreciating the cows . This will be the last bunch I buy threw them . But it was the only way I could get started . Just stuck with them to long IMO

 

[cowboy43]

I have had to always put up enough colateral to match dollar for dollar for what I borrowed in the form of equipment, machinery or cattle. The interest rate was 1 to 2 points above the prime interest at the time of the loan.

 

[Jogeephus]

What he said.

 

[Massey135]

Farm Service Agency. 1.33% fixed for 7 yrs. Bout 3k per 20k borrowed. Annual pmts. The underlying assets (animals purchased) are the only required collateral.

 

[JSCATTLE]

Massey what kinda credit do you have o have to get that rate. My rate at Agri land is 5 percent and I didn't qualify for young farmer and rancher program with the low interest rate because I have to much credit . Same with Fsa loans .

 

[inbredredneck]

Massey what kinda credit do you have o have to get that rate. My rate at Agri land is 5 percent and I didn't qualify for young farmer and rancher program with the low interest rate because I have to much credit . Same with Fsa loans .

Current rates



http://www.fsa.usda.gov/FSA/webapp?area ... pic=dfl-ir

Of course to get those Direct OL, you would need to be unable to obtain credit elsewhere.

 

[inbredredneck]

Any advice on getting and useing financing to buy cattle for both short and long term plans?
I have done some reading and research on herd financing, I was hoping to get some advice from someone who was useing it.
What does the bank want from you?
Has the bank been lending less money in the past few years?
What kind of terms can I expect? (APR and time frame)
Is it even worth doing?

Grass-Fed

Producers out of Omaha does this, as well as help you to buy and sell the cattle. Very knowledgeable group of people, livestock is their business.

 

[JSCATTLE]

Massey what kinda credit do you have o have to get that rate. My rate at Agri land is 5 percent and I didn't qualify for young farmer and rancher program with the low interest rate because I have to much credit . Same with Fsa loans .

Current rates
That's what I'm getting at . If you can help your self they don't want to help you . They would rather give the loans to people who can barely get by so they will keep coming back for loans .


http://www.fsa.usda.gov/FSA/webapp?area ... pic=dfl-ir

Of course to get those Direct OL, you would need to be unable to obtain credit elsewhere.

 

[Massey135]

True the FSA is a lender of last resort. I obtained my loans the month after I graduated and other than about 15k of beer money I borrowed in the form of student loans I had no leverage or credit history. The key to the fsa loans is to establish equity in your operation and not necessarily net income. Build the balance sheet w/o necessarily making much NI and you can continue to qualify. But you have to he willing to reinvest the earnings into capital investments.

 

[inbredredneck]

True the FSA is a lender of last resort. I obtained my loans the month after I graduated and other than about 15k of beer money I borrowed in the form of student loans I had no leverage or credit history. The key to the fsa loans is to establish equity in your operation and not necessarily net income. Build the balance sheet w/o necessarily making much NI and you can continue to qualify. But you have to he willing to reinvest the earnings into capital investments.

Nothing wrong with starting out this way. Where else will you get $300,000.00 at 1.5% for 7 years.