Getting a loan

[wrightwayangus]

I am looking to get an Ag loan to purchase land and was wondering if anyone can recommend a good lender. Also wondering what folks have had or are seeing recently for Ag real estate loans. We are an established operation with a proven track record and are looking at the loan as an expansion tool if that makes a difference when answering my questions. Would prefer to look at between 15-30 year note with ability to pay it off sooner with no penalties; up to a million borrowed (where are the percentage changes from 100,000-1,000,000?). Thanks everyone for your input

 

[BC]

Check with Northwest Farm Credit Service.

 

[Dave]

I deal with Northwest Farm Credit. They are great to work with.

 

[TennesseeTuxedo]

Farm Credit all day long.

 

[J&D Cattle]

I would recommend a good local community bank. I felt farm credit required more hoops than I was willing to jump through.

 

[denvermartinfarms]

I would recommend a good local community bank. I felt farm credit required more hoops than I was willing to jump through.

Me too exactly. I may have an above average relationship my local bank, but if you can deal with a small local bank it's always the best way to go.

 

[H and H]

I don't know that there is any, one, right answer for financing. Everyone's situation is different - I never wanted my 'old man' to co-sign anything at the local bank my great gpa started us off with, so I went to FSA and got a guaranteed loan (15 or so years ago). I cannot give them any kind of recommendation, way too much beuaracracy, however if you have little/no equity and are just starting out - they will get you started.

Since then, I am following an old cowboy's advice to 'always keep your cows paid for,' and its working well. I have a great relationship with the aforementioned community bank, there's an operating line of credit with very reasonable terms and easy term/limit extensions when needed. I agree with J&D, this is my preferred method for banking, there is very little paperwork/stress/no visits/almost a handshake kind of place (not quite, but they'll make sure that check is good while they are waiting for the paperwork to 'catch up').

Back to the topic at hand, if the local bank is not an option; Met Life has a local Ag Real Estate Lending office and they are providing pretty competitive fixed rates - no first hand knowledge with them, but the guys I know who use them, are recommending them.

 

[bigbull338]

if a bank or ag bank dont know you itll take a few weeks to get the loan through them.my nephew found that out this week.an i told him they dont know you or you know them so it takes a while to get a loan.where as i can call my bank an have a loan before i get off the phone because they know me.

 

[denvermartinfarms]

if a bank or ag bank dont know you itll take a few weeks to get the loan through them.my nephew found that out this week.an i told him they dont know you or you know them so it takes a while to get a loan.where as i can call my bank an have a loan before i get off the phone because they know me.

That's the way with my bank, sometimes it's to easy to get money.

Like you say if they don't know you it can take a few weeks, but that sure beats the FSA at 4 to 12 months or maybe not at all.

 

[George]

Farm credit,i have the money i need before i hang up the phone.

 

[TexasShooter]

Agriland Farm Credit

 

[highgrit]

I am kind of curious about these loans. What do you have to put up for collateral?? I can't see banks or other lending institutions giving money to young folks with no credit. I have had a line of credit before but I had the money in the bank to cover it, or I used a house for collateral.

 

[lovehammer]

I am kind of curious about these loans. What do you have to put up for collateral?? I can't see banks or other lending institutions giving money to young folks with no credit. I have had a line of credit before but I had the money in the bank to cover it, or I used a house for collateral.

I don't know about all of the options outlined above, but in my case Capital Farm Credit required 20% down payment. They would have preferred 25%. This was on an ag land purchase.

Don't know if it makes a difference but this was post 2008 also.

 

[shadyhollownj]

Farm credit makes you jump through hoops on fire while your covered in gas. Now thats farm credit east. Took me 8 months to get my farm loan. I could have bought a normal house for twice as much in two weeks with my credit and income. There is only two companies in jersey that will finance over 10 acres so they got you by the .....

 

[denvermartinfarms]

I am kind of curious about these loans. What do you have to put up for collateral?? I can't see banks or other lending institutions giving money to young folks with no credit. I have had a line of credit before but I had the money in the bank to cover it, or I used a house for collateral.

When I got my first line of credit at 18 when I didn't have credit, they just used some of my other cattle for collateral.

 

[bigbull338]

all the farm loans get you to put up your current cattle an equipment plus the cattle an equipment your buying.

 

[Calhoun Farm]

I got my loan with farm credit services, no collateral required but my loan wasn't alot of money either. My loan branch was very helpful and top notch.

 

[wrightwayangus]

I sat down with both the FSA and Farm Credit and I have to say the Farm Credit folks seemed willing to work with a guy. We have a reasonable cash flow so they seemed happy to work with us I don't know what the case would be for someone without any experience trying to buy a place. Has anyone heard of Janus farm loans or worked with them? I also spoke with them and they offered the best rates,which also made me a bit leery of them. Thanks for all the feedback and on the local bank idea I would like to do it, but I'm just not sure where we are expanding to. Anywhere from Oklahoma Texas all the way to Idaho Washington Oregon and anywhere in between that seems a good fit so as soon as we decide on a location then I will try the locals.

 

[denvermartinfarms]

The local thing is good if you have been there a while and have maybe done business with the bank, I would try it when you get there, but in your situation the farm credit thing could be the way to go.

 

[bigbull338]

my family has done business with the same bank for 65yrs.