IARN – The Farm Credit Services of America team continues to provide a simple and secure process to help producers move quickly to selling land or easily start refinancing.
Justin Septer, FCSAmerica Regional Vice President for Business Development in Southeast Iowa, says the FarmLend.com website makes it easy for farmers and ranchers to apply online for a Farm Credit land loan. Services of America. Land loans are still closed and managed locally by FCSAmerica. Septer says several factors come into play throughout the process.
“Things to think about is how much you want to fund,” Septer said. “When you buy a farm, you expect there to be some equity in that purchase for a producer. We’re looking at a few different options. Sometimes people have free and clear land which they use to leverage equity in that land, but in many cases they will use cash. What we’re trying to do is help people understand the impact this can have on the working capital of their operation. »
Septer explains some of the terms to consider.
“The most popular term we have is annualized payout,” Septer said. “People make these payments annually because it makes the most sense in their operation’s cash flow, but we also offer semi-annual, quarterly and monthly payments if that better suits their cash flow. And then we also look at the number of years the loan is funded.
Septer adds that FCSAmerica offers competitive interest rates.
“The client can choose between variable rates, interim rates, fully fixed rates, or a combination thereof,” Septer said. “We use these different interest rates to help people balance their interest rate risk for their transactions. Expertise when it comes to combining all of these things to help producers make the best decision for their operation is one of the most important things we can do to help farmers and ranchers.
Learn more about land loans at FCSAmerica website.
Story courtesy of Iowa Agri-Food Radio Network.
Photo by Farm Credit Services of America