Apply for a Missouri Agriculture Loan at Verimore Bank
Unlike a traditional business loan, agriculture loans have their own specific requirements, stipulations, and terms specific to farming. There are unique aspects to agriculture that can’t be applied to just any business - and it’s even more important to have lenders who understand the farming business and how it ebbs and flows.
Verimore Bank offers agriculture loans because we understand how tumultuous the industry can get. Not everything is in your control - the weather, economic conditions, and time of year can all greatly impact agricultural earnings.
When you’re exploring agriculture loan options, it’s best to understand how they work before you move forward. Understanding the lending process will help you save big and meet all your farm’s needs.
#1: Agriculture Loans Have Unique Requirements
In order to get a farm loan, there are often specific requirements to qualify. This is put into place to ensure you don’t need something like a personal or business loan instead. With agricultural loans, lenders want to see that the money they loan you is going to your farming needs. It’s important that you have substantial documents that prove your existing earnings before you can qualify for a farm loan.
Often, farm loans require larger down payments compared to other personal or auto loans. This can fluctuate depending on whether you live on your farm’s premises, but the average agriculture loan down payment is 20%. Proof of earnings and banking documents help to prove you have cash available to put toward your agriculture loan.
Make sure your record keeping is consistent. When you’re sharing your documentation with your lender, giving them a clear picture of your earnings will ensure you’re left with a repayment plan that you can afford.
#2: Lower Interest Rates and Flexible Terms Are Offered for Agriculture Loans
Considering the large costs of agriculture and farming, lenders understand it’s going to take some time to pay off a large loan. We don’t want farms and agriculture businesses to suffer at the cost of high interest and endless debt - manageable payments and reasonable rates make sure of that!
Especially for farmers looking to steer clear of financial difficulties, an agriculture loan with low interest rates keeps money going into the farm, even while you’re paying off your loan. A farm loan ensures you’re able to keep operations up and running without unpaid debt getting in the way. Your lender should guide you through the loan process and find loan terms that work for you.
The flexibility agriculture loans offer was made with farmers in mind. Given how unique one farm can be from another and how the industry consistently changes, there aren’t many fixed terms in farming - so why should there be when it comes to agriculture loan options? Your lender will walk you through multiple options, whether you need short-term or long-term financial assistance.
When you know what your farming needs are, you’ll know what your financing needs are. Do you need newer equipment to increase efficiency? More products to increase cash flow in the business? Knowing the answers to questions like these will help you assess what terms work best for your business.
#3: Find a Lender Who Understands Agriculture Loans
Not every bank understands the ins and outs of the agricultural business. Working with lenders who specialize in farm loans will save you time and money. The average lender with no agricultural experience may not understand the ups and downs of the farming world - like that you won’t always have a reliable, steady income year-round. Experienced agriculture lenders know the industry and want you to have the financial flexibility and security you deserve.
Verimore Bank has been working with Midwest farmers since 1934, so we understand how imperative farmers are to our community. Our agriculture lenders know the industry. Whether you’re looking to purchase land, finance equipment, or fund livestock operations, we have the experience and knowledge to lead you to success.
Reach Out to One Of Our Agriculture Lenders Today
At Verimore Bank, we believe in supporting our local communities and economy. That means we offer several agriculture loan options for anyone from a novice farmer to a seasoned professional.
We want to be the bank that helps your farm thrive. Meet with one of our ag bankers to start the process!
You can reach us at (855) 871-3303 or eBanking@verimore.bank. Visit our locations page for branch addresses, contact info, and hours of operation.