Would your farm operation of farm business benefit from a line of credit? In the October edition of Money Minute, AgriFinancial’s Sonja Evans, a 26 year veteran of the industry, discusses the advantages a line of credit can provide.
“It gives a farmer the buying power to be readily available so they can move quickly to obtain a piece of land or equipment, without having to wait for a loan process.”
She says having a line of credit in place can help a producer avoid down time or missing out an opportunity to acquire a piece of land in today’s very active market.
Evans explains that lines of credit can be very flexible to fit many different types of operations.
“They can choose either a 5 or 10-year initial draw period with the ability to extend that up to 15 years.”
There are an unlimited number of draws and repayments during this period, and there are no non-use fees on these loans. She adds that these lines of credit can be converted to standard loans at the end of the draw period without having to refinance.
Principal payments can be made at any time, and there are only two interest payments per year: January and July. The lines can be used for both farm operating needs and for an agricultural business that may be connected to the farm.
To contact AgriFinancial, visit cgb-agfi.com.