Farm Land Loans & Mortgage Solutions for Agriculture Businesses
Agriculture will always be an important way to use land in any society. While other property values might fall dramatically, there will always be a need for good, productive farm land. A loan for agricultural land can help facilitate the transfer of family land from one generation to the next. It can also be used for building renovation, machinery purchases and even paying the wages of workers. Farm land loans are available from private banks or governmental agencies, like the United States Department of Agriculture (USDA). While private lenders might offer more options, the government might offer lower interest rates. To get started, fill out the form to the right and a representative will call you back to discuss your options for funding.
Understanding Farm Land Loan & Mortgage Rates
Loans for agricultural farm land allow owners to buy, upgrade, expand or improve their property. This benefits individuals, rural communities, farming machinery manufacturers and lenders alike. Farm mortgages will require that the applicant meet a minimum credit score, land appraisal, age and citizenship guidelines. The lender will determine the loan-to-value (LTV) percentage of fair market value when calculating the agricultural land loan rates. You can compare different farm loans using an agriculture calculator – just plug in the loan amount, farm land loan rates and repayment frequency. Some loan calculators will allow you to see how adjusted or extra payments will impact the final principal, interest and time period for the farm loan.
Farm Mortgage Loans Against Agricultural Land
Modern finance is helping farm owners upgrade their homesteads with mortgages. A mortgage loan against agricultural land can be used to modernize an old farm or ranch. Perhaps you want to make your barn more modern; farm mortgage loans turn your dreams into reality. Your farm is not only a business, it is your home too. Rural mortgage lenders can even help with home renovations for newborns or aging grandparents. With Halo Capital’s diverse set of programs available, you can find an agri loan that fits your needs.
The Benefits of a Loan to Buy Agricultural Land
A loan for agricultural land purchase could be used for a primary farming business, hobby farm or second rural home. Equity levels for rural farm loans may be higher than a traditional home loan. The tax benefits for an urban or rural home are basically the same. The real tax benefits for an agri-business are based on machinery depreciation and writing off interest as a business expense. A loan on agricultural land can oftentimes create a more diversified asset portfolio.
In addition, a loan to buy agricultural land can help raise more capital for a wealthy investor. Farmers mortgage loans can also help with changing an agricultural cooperative’s brand image. More eco-friendly machinery, organic farming methods or experienced workers could be hired with the agri loan proceeds. Some government programs may be available for certain acreage levels, but usually private lenders will make money available for any sized plot of land.
The Uses for an Agriculture Land Loan
Farm loans and agricultural mortgages should provide you with a line of credit to be used for purchasing machinery, paying wages or upgrading facilities. There are numerous USDA, Farmer Mac and Farm Service Agency farm loans available to help fund rural development. A Farm Bureau mortgage might be the best way to upgrade your farm equipment; perhaps, you need a new tractor for example.
You could use a farm mortgage loan online calculator to calculate repayment amounts and total payment. A loan to purchase agricultural land could also be used to expand your farm if a neighbor is selling his land. Buying agricultural land is a good investment for the long-term. Halo Capital can help you find agricultural land loans with low interest rates to prepare for the future.
Hobby Farmers Mortgage & Farm Real Estate Loans
Hobby farms can also be purchased using an agriculture land loan. If you retire from a long, successful career, you might want to purchase a ranch with horses, cows and pigs. This would be a nice way to enjoy your retirement years. Purchasing new tractors, ATVs and jeeps may be a wise investment for new hobby farm owners too. In addition, a good operating credit line allows you to make renovations to your rural home, barn or shed or it might be a nice way to spend a pension bonus. If you apply with good credit, you may get better rates than a conventional car or housing loan.
In conclusion, both governmental and private lenders are involved in financing agriculture. In addition, farmland financing can change your tax status allowing you to deduct certain expenses for your agricultural business. This type of lending plays in important role in the growth of our food economy as well as our quality of life.
Fill out the form with your contact information and a representative will discuss agricultural mortgage loans that might work for you.
For more info about our commercial real estate loans, see this page.