Food-borne illnesses are increasingly more common with the rise of factory farms and reliance on automated technology to increase production rates across the country. This is bad news for both consumers and farmers that depend on steady and reliable purchase orders to make ends meet. To address these concerns, the FDA is proposing new traceability guidelines to better protect the end consumer and reduce liability across the board. Though operating loans for farms can help you make the necessary improvements, you need to know what these rules entail before you start making changes to your business.

It All Comes Down to Record Keeping

The most important takeaway from these proposed rules and regulations is that it all comes down to recordkeeping on your farm. The traditional methods of tracking which crops were harvested, when they were processed, and where each product ended up in the supply chain aren’t enough. The FDA now expects farmers to provide electronic documentation for their crops and processing efforts.

This makes it easier for farmers to satisfy inquiries made about potentially infected crops and cuts down on the amount of time it takes for the FDA to locate each retailer that sold impacted products. However, it does present a challenge for farmers used to operating in a certain way. You’ll need to invest in new equipment and software programs to successfully implement and satisfy the new FDA requirements.

Loans Are an Option

If the thought of those strict and changing traceability rules have you worried about your bottom line, you’re not alone. Upgrading your equipment and programs costs money and that’s money you could better use to grow your operation and increase your output. Unfortunately, the traceability rules and guidelines are here to stay. You’ll need to find ways to pay for the necessary improvements to keep your operation in compliance.

Operating loans for farms can help you get the money you need to make the necessary improvements and changes quickly. The key to finding a good loan lies in speaking with several lenders and comparing your options. Get quotes for several loans and compare the terms in detail.

MSF Is Here to Help

As experienced mortgage brokers, our team at MSF Agriculture is here to help you get the financing you need to keep your business up to code. Reach out to our experts and let us help you find the right loan options for your growing farm.