Equity Lines of Credit
An ag equity line of credit provides flexible access to capital using the equity in your farm or ranch. It's an ideal financing solution for operating expenses, expansion, equipment purchases, and unexpected opportunities while preserving long-term cash flow.
An Ag Equity Line of Credit is a great way to use the equity in your farm to finance your day-to-day operating costs, development, or to have a ready source of funding to purchase that property next door.
Sources includes Farmer Mac and other sources.
First Trust deed on property offered as collateral.
Maximum Loan to Value - 55% of open land value.
Draw period of up to 10 years.
Loan Term of 30 years.
Payments interest only during draw period paid semi-annually.
No requirement to pay to zero balance each year.
Can also complete a long term mortgage on same property as second as long as combined loan to value does note exceed 70%.
Interest rate adjusts every 30 days.
Typical uses - annual operating expenses, development or re-development, or source of funds to take advantage of opportunities.
