When you think about growing your corn business, what’s the first thought that comes to mind? If you’re like most farmers, it’s finding new and innovative ways to get your product to more consumers. With the COVID-19 pandemic running rampant, fewer restaurants and food processers are actively looking for more crops. Demand just isn’t there. The Next Generation Fuels Act gives corn farmers hope for their crop and makes it easier to reduce waste so you can better utilize the money you receive from the loan for farmland you took out to increase the scale of your operation.
What the Next Generation Fuels Act Is
The Next Generation Fuels Act is a measure put forth to produce fuel that generates significantly lower amounts of harmful greenhouse gases. It does this by stipulating new octane requirements for standard fuel across the country by allowing fuel producers to use more ethanol in standard fuel. Higher percentages of ethanol in the fuel doesn’t impact the quality of the gas you use in your car. It just makes it more environmentally friendly and produces fewer harmful emissions that threaten the stability of the global climate. By increasing ethanol percentages, the act has serious implications for existing corn producers.
It Means Higher Demand
More allowable ethanol means fuel companies will start looking for new corn producers to partner with. This means there’s higher demand for quality corn and ethanol across the board. For existing farmers, you’ll have the opportunity to sell corn at market prices, eliminating the risk of excess food waste. For up and coming farmers, this presents a new opportunity to enter the corn production market. That higher demand means more farmers applying for a new loan for farmland to expand their crops.
How Should You Handle This?
The more farmers that apply for a loan for farmland, the longer it will take for lenders to review applications. If you’re thinking about applying or want to start increasing your land holdings before demand shifts, you’ll need to apply for financing as soon as possible. This way, you’ll enter the queue earlier and will be able to get a decision from lenders more quickly.
Applying for a loan for farmland is easier than you think. You just need to partner with the right lender to make it happen. If you’re ready to expand your farm, don’t wait. Contact us to discuss your financing options today.