Our farm operating loans give producers the capital they need to pay for agricultural-related expenses, such as livestock, fertilizer, and seed. To accommodate farming's seasonal cash flow, funds are available as producers need capital and can be paid down to restore funds for future draws. By deciding when and for how long they borrow from their line of credit, producers also limit the amount of interest they pay.
Why Work With Us for an Operating Line
Product Overview
Operating Line of Credit Explained
Farm operating loans give producers the capital needed to pay for agricultural-related expenses, such as livestock, fertilizer, and seed. This flexible financing tool provides farmers and ranchers with access to capital as needed and can be paid down to restore funds or future draws.
Key characteristics of operating lines of credit include:
- Revolving Credit. As funds are drawn and repaid, the credit limit is replenished, allowing for continuous access to capital.
- Seasonal Needs. Lines of credit are often used to cover expenses that fluctuate with the agricultural cycles.
- Flexible Draw Periods. Producers can draw funds as needed, providing flexibility in managing cash flow.
Calculate Your Savings
Use the calculator below to see how much money you could save with an operating line of credit.
Let's do the math.
Our line of credit includes money-saving benefits, unique features and management tools that make your money work smarter for you. The following example shows you how.
Example:
Operating line of credit: $375,000
Average outstanding balance: $275,000
The Board of Directors intends to pay a dividend equal to at least 1.0% of a customer’s eligible average daily loan balance. Remote Deposit savings reflect average AgCountry customer savings. Cash-back dividends are based on eligible loan volume and Association financial results. Prior distributions should not be interpreted as guarantees of future performance.
Farm Operating Loan Rates and Terms
Fixed Rates
- Choice of revolving or non-revolving line of credit.
- Payment plans designed around your cash flow expectations.
Variable Rates
- Choice of revolving or non-revolving line of credit.
- Rate based on either market index or AgCountry-administered indexes.
Convenient Features
Flexible payment options to fit your cash flow needs. Interest-only loans with monthly statements and annual interest give you more marketing flexibility. Choose the date you want to pay your annual interest based on your needs.
Additional Benefits
How to Apply for an Operating Line of credit
1
2
Primarily, financing may be provided for the following eligible borrower categories:
- Full-time Farmer or Rancher – Actively engaged in the management of ag land or ag production and their net farm income is greater than their net non-farm income.
- Part-time Farmer or Rancher – Materially participates in the management of ag land or ag production, but has a gross farm income less than their net non-farm income.
3
You can apply in-person. We offer a streamlined process that is quick and easy, and you'll be connected with a financial officer who has a deep understanding of operating lines of credit.
To expedite the application process, please gather this information:
- How you plan to secure your loan
- Description of your operation
- Your plans to use the loan funds
Agricultural Insights
Related Products
We finance every aspect of a farm and ranch operation. Discover the difference and check out our other products.
Get Started
Connect with a local office or contact us for more information.