Owning a dairy farm is a dream come true for many farmers, but it’s definitely a challenge. You need to find land and acquire a herd large enough to produce enough income for your family. This means looking into a land loan for ranch properties and other types of financing specifically for dairy farmers. Luckily, there are many types of loans you can apply for that will help you get your business off the ground or expand it without putting strain on your budget.
Financing additional land can be harder than taking out a mortgage or using a USDA loan to finance a farm with a livable house on the property. You need to choose loans specifically designed to help farmers and ranchers acquire raw, usable land. When you apply for a loan for ranch properties, you’ll need to showcase how you’ll use the land and provide a general idea of its value to the lender if you want to qualify. In most cases, dairy farmers with existing operations will find it easier to qualify for this type of a loan.
If part of your operation requires building a new barn or milking facility, a dairy farm construction loan is an absolute must. These loans can be used for construction only, not for purchasing raw land or acquiring more cattle. That said, you may be able to refinance the loan after construction to secure a lower monthly payment.
General Dairy Farm Loans
Dairy farmers don’t just have to apply for a loan for ranch land. They can also apply for financing to help expand their herd and purchase new equipment to more effectively streamline their operations. These loans have flexible use restrictions, letting you use the funds for several purposes based on your farm’s needs at the time that you apply. You can even use the loan to help pay for changes to your operation like switching from conventional to organic farming practices. Any use restrictions will be outlined in the loan’s terms so you’ll know what you’re getting into before you accept the money.
Find a Lender You Can Trust
Whether you’re looking for a dairy farm loan or a land loan for ranch properties, you need to work with a trustworthy lender. At MSF Agriculture, we’re here to help you find the right loan for your business and your budget. Contact us at (949) 287-9525 to learn more.