www.www.worldexecutivesdigest.com | Farm Equipment Financing: How to Pay For What You Need | Farmers are hardworking people, especially when they’re trying to run their farms while finding farm equipment financing. We’ll share ideas that might help!
Anyone familiar with the history of the United States understands how important farmers have been in the development of America. The heartland is filled with the hardest working people you’ll ever meet, and they have the hardest job in the world.
It’s no secret that farmers rely on their equipment to keep their crops growing strong in order for billions of people around the planet can put dinner on the table. This equipment definitely isn’t cheap, thus farmers across the country struggle to find resources to pay for what they need.
Fortunately, farm equipment financing provides the funding needed to keep farming operations up and running. This article takes a look at some of these funding options and how to apply for them. Keep reading to see all the important details.
Financing Directly From Manufacturers
One of the most popular ways of financing farm equipment is to finance it directly from the manufactures that produced it. Major manufacturers such as John Deere offer equipment financing as an alternative to traditional lending institutions.
If this is an option that you’d be interested in learning more about, be sure to talk to your local farm equipment dealership about financing options that might work best for your situation.
Another option is to lease your farm equipment. This option is popular with many farmers who’d rather not purchase their equipment outright or finance it over a specified number of years.
Leasing enables you to use the irrigation equipment and other tools you need for keeping your farm operation up and running, without feeling burdened by the debt that comes with traditional financing.
USDA Direct Operating Loans
This type of government loan makes it possible to cover the costs of equipment and supplied needed for your farm, with repayment terms that extend up to seven years.
This type of loan also offers some of the best rates that you’re likely to find anywhere.
USDA Guaranteed Operating Loans
This type of loan, the USDA doesn’t loan the money directly, they simply guarantee the amount of the loan. This means that the land rate for equipment is negotiated between the lender and borrower, and the government will then back the loan only if necessary.
USDA Operating Microloans
The purpose of microloans is to assist smaller farms in need of limited funding. These loans are typically less than $50,000 and are expected to be repaid with 12 months.
AgDirect Farm Equipment Loans
AgDirect specializes in providing farm equipment loans and leases for private-party purchases, auction, and dealerships. They work closely with Farm Credit associations to make their financial products as farm-friendly as possible.
They enable farm equipment financing options starting as low as $5,000, depending on factors such as whether the purchase was made from a private-party or new from the dealership.
The Best Farm Equipment Financing Options
Buying farm equipment can be stressful. Fortunately, the farm equipment financing options listed here can help you get the equipment you need so that you can keep food on the table without overextending your operating budget.
Keep scrolling to discover more useful rural-living tips and advice.