IARN — The team at Farm Credit Services of America continues to offer a secure and simple process to help producers move quickly on a land sale, or easily start a refinance.
Justin Septer, FCSAmerica’s regional vice president for business development in southeast Iowa, says the website FarmLend.com allows farmers and ranchers to easily apply online for a Farm Credit Services of America land loan. Land loans are still closed and serviced locally through FCSAmerica. Septer says there are several factors that come into play throughout the process.
“Things to think about are how much you want to finance,” said Septer. “There is an expectation when you buy a farm that there is some equity in that purchase for a producer. We’re looking at a couple different options. Sometimes people have free and clear ground that they use to leverage the equity in that ground, but in a lot of cases they will use cash. What we try to do is help people understand the impact that may have in the working capital of their operation.”
Septer explains some of the terms to consider.
“The most popular term we have is an annualized payment,” said Septer. “People make those payments annually because it makes the most sense in the cash flow of their operation, but we also offer semi-annual, quarterly, and monthly payments if that fits better into their cash flow. And then we also look at the number of years that loan is financed.”
Septer adds FCSAmerica offers competitive interest rates.
“Customer can choose between variable rates, interim rates, fully fixed rates, or a combination of these,” said Septer. “We use these different interest rates to help people balance their interest rate risk for their operations. The expertise when it comes to combining all of these things to help producers make a decision that’s best for their operation, that is one of the most important things we can do to help farmers and ranchers.”
Learn more about land loan’s on FCSAmerica’s website.
Story courtesy of the Iowa Agribusiness Radio Network.
Photo by Farm Credit Services of America