During planting season and the many hours in the cab, farmers have plenty of time to be thinking about the future and planning for immediate and future needs. That can include land and equipment and right now loan rates are very attractive. Eric Ross handles farm lending for Security Federal Savings Bank’s Carroll County office. He says a farmer with a lot of short term debt might want to consider moving that to a longer term.
“Fifteen year fixed rates around 5 percent, the 20 is about 5 3/4, a 25 year is around 6, and even a blended rate where maybe he’s got long term locked in and then short term to get the lower rate can be a good idea,” he told HAT. “But I think that with the fact that rates are historically low that farmers need to be looking at getting the rates locked in because we don’t know what the future is going to bring and it’s more than likely going to increase sometime in the future, we just don’t know when.”
Of course, as always, when meeting with a banker have the necessary documents ready for them.
“We really like to see at least 3 years’ tax returns, 3 years of production records. We like to see their leases. We like a personal financial statement, corporate financial statement, projection for the next year, and we like to come and visit the farm and talk to them individually. We like to sit down with them at their kitchen table or their office and try to give them financing that is going to be tailor made to them.”
Ross says the chance to meet on the farm helps the banker really understand all that equipment and technology that’s being financed.
“You know today there is so much equipment and everything is so encompassing that just to have the opportunity to get them in their environment and see what they’re looking at and get a feel for their operation, we really appreciate that and enjoy meeting with them directly.”
Security Federal is headquartered in Logansport with other branches in Kokomo and Lafayette. Hear the full interview with Ross, VP for the Delphi branch:Eric Ross