Revenue-Based Financing for Agriculture
Harvest brings $400,000 in revenue over 2-3 months. Off-season months have minimal or no deposits. Revenue-based financing structures payments as a percentage of your deposits, automatically adjusting to your actual cash flow. Heavy during harvest, light during off-season.
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Revenue-Based for Agricultural Patterns
Revenue-based financing calculates payments as a percentage of your bank deposits. Since farm deposits concentrate heavily at harvest, payments naturally align with agricultural cash flow patterns.
Harvest Concentration
Most farm revenue arrives in a 2-3 month harvest window. Revenue-based payments concentrate during these high-deposit months when you have cash available.
Off-Season Relief
Off-season months may have minimal or zero deposits. Revenue-based payments drop proportionally, potentially to near-zero during dry months.
Automatic Adjustment
No need to request payment modifications or negotiate seasonal terms. The structure automatically adjusts based on actual deposits.
Deposit Percentage Model
Typical revenue-based financing takes 6-10% of daily or weekly deposits until the obligation is satisfied. Strong deposit weeks pay more, weak weeks pay less.
Why Fixed Payments Create Stress
Agricultural revenue is fundamentally seasonal. Financing should acknowledge this reality.
Fixed Payments vs. Seasonal Reality
A $5,000 monthly payment is manageable during harvest but impossible during off-season with minimal deposits.
Concentrated Revenue
65-80% of annual revenue arrives in 2-3 harvest months. Fixed payments ignore this fundamental agricultural timing.
Off-Season Cash Drain
Fixed payments drain cash reserves during low-revenue months, risking operational capital for next season.
Negotiation Friction
Seasonal payment adjustments with banks require negotiation and approval each year.
Variable Harvest Size
Good years and bad years both happen. Fixed payments do not adjust to actual harvest revenue.
Marketing Timing Flexibility
You may choose to store and sell later. Revenue-based payments adjust to when you actually receive payment.
Revenue-Based Financing Process
Get approved with payments that automatically match your cash flow.
Application
Complete application with farm information and capital needs.
15 minutes
Bank Statements
Provide 6-12 months bank statements showing deposit patterns including harvest.
Upload documents
Evaluation
We analyze your deposit patterns, harvest concentration, and repayment capacity.
3-7 days
Funding
Accept terms with percentage-based payments. Funds deposited to your account.
1-3 days after approval
Payments That Match Farm Reality
Revenue-based financing ties payments to your actual bank deposits. Harvest months when deposits are heavy naturally pay more. Off-season months with minimal deposits automatically adjust. No negotiation, no modification requests - just automatic alignment with your cash flow.
Harvest Alignment
Heavy deposits during harvest mean heavy payments when you have cash. Natural timing with agricultural economics.
Off-Season Relief
Minimal deposits during off-season mean minimal payments. Do not drain reserves during low-revenue months.
Automatic Adjustment
No negotiation or modification requests. Structure automatically adjusts based on actual deposits.
Variable Year Protection
Bad harvest year means lower deposits means lower payments. Good year means you pay faster.
Fast Access
Most applications receive decisions within 3-10 days. Faster than traditional agricultural lending.
Marketing Flexibility
Sell when you choose. Payments adjust to when you actually receive revenue.
Revenue-Based for Agriculture
Common applications where harvest-aligned payments provide optimal structure.
Equipment Purchase
Finance equipment with payments that track harvest revenue. Pay when cash arrives.
Typical funding: $50K-$200K
Operating Capital
Input funding with harvest-aligned repayment. Fund planting, pay at harvest.
Typical funding: $25K-$150K
Expansion Capital
Growth investment paid back through harvest revenue as it materializes.
Typical funding: $50K-$200K
Infrastructure
Storage, buildings, or improvements with seasonal repayment.
Typical funding: $40K-$150K
Land Down Payment
Down payment capital with harvest-aligned payback.
Typical funding: $30K-$100K
Livestock Operations
Livestock capital with payments tied to sale revenue patterns.
Typical funding: $25K-$100K
Revenue-Based vs. Fixed Payment Options
Understanding how revenue-based differs from traditional financing.
| Feature | Revenue-Based | Fixed Term Loan | Bank Operating |
|---|---|---|---|
| Payment Structure | % of deposits | Fixed monthly | Fixed or seasonal |
| Harvest Adjustment | Automatic | None | Sometimes available |
| Off-Season Payments | Automatically lower | Same as harvest | May be negotiated |
| Bad Year Protection | Lower deposits = lower payments | No protection | Possible modification |
| Speed | 3-10 days | 1-3 weeks | 30-60 days |
| Documentation | Bank statements | Moderate | Extensive |
| Negotiation Required | No | Sometimes | Annual renewal |
| Total Cost Predictability | Known total | Known total | Known |
Revenue-Based Requirements
What qualifies farms for revenue-based financing.
Farm Revenue
Demonstrated crop sales or agricultural revenue through bank deposits.
$200,000+ annual
Operating History
Established farming operation with production track record.
2+ years preferred
Bank Deposits
Bank account showing clear harvest deposit patterns. History should include at least one harvest cycle.
6-12 months statements
Harvest Pattern
Revenue concentration during harvest periods. Revenue-based works best with clear seasonal patterns.
Clear seasonality
Active Operations
Currently operating farm with ongoing activity.
Active production
Positive Cash Flow
Sufficient revenue to support percentage-based payments during harvest.
Supports payments
Revenue-based financing emphasizes deposit patterns. Harvest concentration is expected and valued. The structure is designed for agricultural seasonality.
Real Results
Sunflower Farms
Row Crop Operation, South Dakota
The Challenge
Sunflower needed $75,000 for input financing and equipment. Fixed monthly payments of $3,500 would have been impossible during the 7-8 off-season months with minimal deposits.
The Solution
Revenue-based financing with 8% of deposits. During harvest (3 months), payments ranged $8,000-$12,000 monthly. Off-season months paid $500-$1,500 based on minimal deposits.
The Result
Financing repaid primarily through harvest revenue when cash was available. Off-season cash flow stress eliminated. Sunflower has refinanced twice with similar structure.
“Harvest does 75% of our revenue. Revenue-based means we pay 75% during harvest when we have the cash. Off-season months are automatic relief. I do not stress payments January through April anymore.”
Agriculture Revenue Data
Understanding agricultural revenue patterns.
Why Farms Choose Revenue-Based
Benefits of deposit-aligned payment structures.
Harvest Automatic
Heavy payments during harvest when cash is available. No negotiation needed.
Off-Season Relief
Minimal payments when revenue is low. Preserve cash for operations.
No Fixed Pressure
Never stress about fixed payments during dry months.
Bad Year Protection
Lower harvest means lower deposits means lower payments.
Marketing Flexibility
Payments align with when you actually sell, not arbitrary schedules.
Known Total Cost
Factor determines total repayment. No surprise interest accumulation.