One of the major hurdles to starting a small farm is purchasing all of the requisite equipment. Farming is certainly hands-on work, but there are also certain technologies that are an essential part of any farmer’s toolkit. These range in price, but they can add up to a hefty and burdensome cost.
Thankfully, ag loans can provide a solution. This article will outline how to secure an ag loan, and how it can help you purchase the farming equipment that you’ll need.
How Do Ag Loans Work?
An agriculture loan can provide you with a percentage of the funds you need to start a farming operation. Once you’ve signed an agreement with your lender, you’ll be expected to repay the loan according to a predetermined timeline. The amount that you’ll repay will include interest, which is based on rates that vary from lender to lender. It’s important to work with a lender whose repayment policies and interest rates will not exceed your means.
Equipment for Beginning Farmers
Here are just a few examples of pieces of equipment that an aspiring farmer might need to invest in:
- Tractor
- Backhoe
- Cultivator
- Seed drill
- Lawn and garden sprayer
- Sprinkler system
Of course, every farm will vary in terms of the quantity and scale of equipment that it will require. Still, every farmer should plan on investing in at least some of the major pieces of equipment outlined above. That’s where ag loans come in.
Which Ag Loans Can Help You Buy Equipment?
FSA Direct Operating Loans may be able to help you purchase the equipment that you need to start or expand your farm. These are available to anyone who has a reasonable credit history and can demonstrate their ability to repay a loan. MSF Agriculture can also pair you with a personalized loan to help you to afford the equipment that you need!
At the end of the day, you have numerous options when it comes to paying for farming infrastructure and equipment. Before you seek out an ag loan, be sure to identify each of the pieces of equipment that you need. That way, a lender will be able to pair you with a loan that suits your needs.
Shop for Ag Loans Today
At MSG Agriculture, we specialize in helping independent farmers to make their farming business and property goals a reality. Contact our office today to learn more about ag loans!