Term Loans for Agriculture
Some farm investments need predictable financing. Equipment packages, infrastructure projects, or expansion capital deserve fixed payments you can budget around. When you need to plan with certainty, term loans provide the predictability your operation requires.
How much funding do you need?
Drag the slider or type an amount
When Term Loans Work for Agriculture
Term loans excel for substantial farm investments where payment predictability matters. Fixed monthly payments enable precise budgeting even within seasonal cash flow patterns.
Fixed Payment Budgeting
A $150,000 term loan at 16% for 60 months means $3,650 monthly. This predictability lets you plan cash reserves and budget precisely.
Extended Terms for Agriculture
Terms from 1-5 years spread payments to manageable levels. Longer terms mean lower monthly payments that fit within operating budgets.
Seasonal Cash Planning
Even with seasonal revenue, fixed payments can be planned for. Build reserves during harvest to cover off-season payments.
Total Cost Clarity
Interest rate and amortization schedule show exact total repayment from day one. No surprises over the loan term.
When Predictable Payments Matter
Major farm investments often demand fixed monthly obligations that can be planned around.
Variable Payment Uncertainty
Revenue-based or MCA payments vary unpredictably. When you cannot forecast financing costs, planning becomes difficult.
Major Investment Scale
Equipment packages, infrastructure, or expansion require substantial capital with long-term planning.
Budget Integration
Farm budgets require known costs. Variable payments make annual planning challenging.
Cash Reserve Planning
Building reserves for financing requires knowing exact payment amounts in advance.
Multi-Year Projects
Infrastructure or expansion projects span multiple seasons. Predictable financing matches project timelines.
Financing Cost Comparison
Variable payment products make true cost comparison difficult. Fixed payments clarify total cost.
Agriculture Term Loan Process
Get fixed payment financing with clear terms and predictable costs.
Application
Complete application with farm information, use of funds, and financial details.
15-20 minutes
Documentation
Provide bank statements, production records, and tax returns.
Gather documents
Underwriting
We evaluate farm revenue, production history, and repayment capacity.
5-14 days
Funding
Accept terms with fixed payment schedule. Funds deposited to your account.
1-3 days after approval
Structured Financing for Major Investments
Term loans provide predictable monthly payments over extended periods. Know your exact payment, total cost, and payoff date from day one. Build fixed financing costs into your farm budget with certainty.
Fixed Monthly Payments
Same payment every month for the entire term. Know exactly what you owe each month.
Extended Terms
Terms from 1-5 years spread payments to manageable levels that fit farm economics.
Clear Total Cost
Interest rate and amortization schedule show exact total repayment from the start.
Budget Integration
Fixed costs can be built into annual farm budgets with precision.
Lower Total Cost
Term loans often cost less total than MCA or shorter-term options for larger amounts.
Agriculture Understanding
We evaluate farms based on production and revenue, understanding seasonal patterns.
Agriculture Term Loan Applications
Common situations where predictable financing serves farms well.
Equipment Package
Multiple pieces bundled into single financing with fixed payments.
Typical funding: $50K-$200K
Infrastructure
Buildings, storage, grain handling, or shop construction.
Typical funding: $50K-$200K
Expansion Capital
Growth capital with predictable repayment over extended term.
Typical funding: $30K-$150K
Major Equipment
Large tractor, combine, or significant single equipment purchase.
Typical funding: $50K-$200K
Land Improvement
Drainage, irrigation, or land improvement projects.
Typical funding: $40K-$150K
Working Capital
Substantial operating capital with fixed repayment structure.
Typical funding: $25K-$100K
Term Loans vs. Alternative Financing
Understanding when fixed payments make sense versus alternatives.
| Feature | Term Loan | MCA | Revenue-Based |
|---|---|---|---|
| Payment Structure | Fixed monthly | Daily/weekly variable | % of deposits |
| Repayment Term | 1-5 years | 6-18 months | 6-18 months |
| Total Cost | Clear from start | Factor rate | Factor rate |
| Typical Rate | 14-22% APR | 30-50%+ effective | 25-40% effective |
| Payment Predictability | Exact amount known | Varies daily | Varies with deposits |
| Best For | Planned investments | Emergencies/speed | Seasonal alignment |
| Speed | 1-3 weeks | 3-7 days | 3-10 days |
| Budget Integration | Easy | Difficult | Moderate |
Term Loan Requirements for Agriculture
What qualifies farms for fixed payment term loans.
Operating History
Established farming operation with track record.
2+ years preferred
Farm Revenue
Sufficient revenue to support fixed monthly payments through seasonal variation.
$200,000+ annual
Owner Credit
Term loans typically require good personal credit from owners.
640+ preferred
Production History
Documented crop yields or livestock production over multiple years.
2+ years production
Profitability
Demonstrated profitability or clear path to profitability.
Profitable operations
Cash Flow Capacity
Ability to maintain payment during off-season through reserves or secondary income.
Reserve capacity
Strong farm revenue and profitability support term loan qualification. Seasonal patterns are evaluated in annual context.
Real Results
Sunset Farms
Row Crop Operation, Oklahoma
The Challenge
Sunset needed $85,000 for grain handling equipment and storage improvements. MCA quotes created unpredictable costs that varied daily. They wanted to budget financing costs precisely.
The Solution
We structured a 48-month term loan at 15.5% with fixed monthly payments of $2,400. Total repayment and schedule known from day one.
The Result
Equipment acquired. Fixed payments incorporated into annual budget. Sunset builds reserves during harvest to cover off-season payments. Financing costs are now a known line item.
“MCA payments varied every day. I never knew what financing was costing me. Fixed payments let me budget with confidence. I know exactly what I owe each month.”
Agriculture Term Loan Data
Statistics on term lending for farming operations.
Term Loan Advantages for Agriculture
Why fixed payment financing works for farms.
Budget Certainty
Build fixed financing costs into annual farm budget with precision.
Lower Total Cost
Extended terms often mean less total cost than MCA or short-term options.
Payment Planning
Build reserves during harvest for off-season payments. Known amounts enable planning.
Clear Payoff Date
Know exactly when financing will be paid off. Plan for next investment.
Refinancing Option
As credit improves, term loans can be refinanced to better rates.
Multi-Year Projects
Infrastructure and expansion projects match well with extended repayment.