A farm loan helps farmers expand, operate, and buy a farm. A farm loan may offer liquid cash at the start-up stage, in addition to helping established farms that have a cash crunch within a seasonal challenge.
Livestock, crop, and equipment financing, in addition to credit lines, are common methods for which a farm loan may take form.
A farm loan varies depending on your financial history, the size of your farm, your collateral, as well as whether you’re eligible for a federal FSA (Farm Service Agency) loan program or farm program made by a commercial lender. In 2020, farm operating and ownership loans were the highest in history, topping more than $7.5B, according to the FSA.
How Do Farm Loans Work on Tillable.com?
Farm loans on Tillable.com are easy, click here to learn more about it. Here is how their “Tillable Finance” program works:
Apply on the internet:
Tillable Finance is the original digital process for farm loan applications.
Receive a fast response:
Typically, Tillable’s agriculture financing partner reacts to a loan request within 24 – 48 business hours.
Sit back and wait:
You do not need to be concerned with any deposits. The landowner gets paid fully from the loan. You’ll pay the loan off after harvest.
Tillable Finance Benefits-
Tillable’s finance program offers many benefits, including:
Your farm does not need to be on Tillable to apply:
They accept applications from any farm in their finance territory. They especially like to see their Tillable farms financed through the Tillable Finance program, so if you accept their loan on a Tillable Farm, the grower fee is waived.
You do not need to scan or print anything:
It’s possible to do it all from a phone or laptop (they are the only online farm rental loan in the market).
You do not have to offer collateral:
Unlike the majority of agricultural loan products, their participating lender won’t require collateral from qualified applicants.
You do not need to accept the loan if you are approved: Just place your application in and check what rate you receive.
There aren’t any Tillable fees related to the loan:
Tillable does not charge any fees for a grower to accept or apply for a loan. Their participating agricultural partners have standard loan fees, which include interest (interest rates are as low as 3.5 percent) in addition to an origination charge of 1.0 percent.
It won’t cost anything to apply:
The application is free and it’s possible to apply for as many farms as you want (so long as they are in their financing territory).
There aren’t any more payments to the landowner:
They’ll make your payment right to the landlord, in order for you to instead spend your time farming.
The benefits of working with Tillable are numerous. In creating the original online farmland rental marketplace, they’re bringing efficiency and transparency to a $32B market. With their easy-to-use digital platform and hassle-free lease, they’re making it faster and easier for landowners to get paid a fair rent and take care of their farm lease.
