Running an agricultural operation is complicated, especially when it comes to the business and financial aspects. Our ag bankers are experts in ag banking, including expansion, land purchase, equipment leasing, risk management and more.
Success doesn’t just happen. You’ve planned and worked hard to achieve results, and we can help you expand your operation and take your business to the next level.
The combination of our financial knowledge, experience and business expertise will help you chart a course to achieve your goals. We’ll develop and tailor solutions to help you balance risks and rewards. In a marketplace of constant change, our commitment to building long-term relationships with your business remains constant. Just like you, we’re in this for the long term. We will help you identify your goals and provide the best solutions to reach your destination.
Expanding your farm operation with the purchase of land can help you reach your goal, if you are looking to control an asset through ownership, increase your crop rotation options, introduce a family member into the operation, or simply grow your business.
Long-term loans can offer a stable source of financing for farm land or facility purchases. Farm real estate loans can help make improvements to your land and agricultural structures, and can help to replenish or increase working capital. A variety of loan terms are available and can be amortized over the term of the loan. Payments are managed by matching flexible terms to debt repayment capacity.
Our dedicated team understands agriculture and the business of farming. We know land and its production history. We provide advice on real estate financing options and government programs, and make decisions locally.
Your American Federal Banker can show you financing and leasing options to suit your specific farm machinery or agribusiness equipment needs.
If your goal is to improve productivity, enhance a process or expand production capacity, we structure and arrange custom financing solutions, including term loans and leases, for capital equipment, irrigation systems, chemical application equipment, technology and other farm machinery and equipment.
Loan terms and repayment schedules are matched to the loan purpose and your income. Leasing may be a solution for your farm if you want to reduce your initial cash outlay and improve cash flow. Leasing can also provide tax benefits with full deductibility of your payments with a properly structured lease. We will help you customize a lease to fit your farm operation and design a payment schedule to fit your cash flow.
Contact your American Federal Banker to determine the best option for your operation.
Plan for a secure retirement and achieve financial independence.
We can help you identify your long-term goals and think through the options for a workable retirement and succession plan whether you are looking to change leadership in a family farm, transition to the next generation or take a smaller role in your operation to spend more time in retirement endeavors.
An American Federal Ag and Business Banker will help you develop a transition plan to maximize the value of your operation and preserve the wealth of your operation while passing on a legacy. We will help you analyze and think strategically, both short- and long-term, about your personal and business goals. As trusted advisors, we will help you consider how to control income, estate taxes and administrative costs and keep your operation profitable in the future when times are prosperous or lean.
Agriculture is more complex and unpredictable than ever. Risks associated with increasing costs, uncertainty in prices and yields, global competition, climate, disease, changing government subsidies, and the unforeseen can impact profits.
We generate ideas and promote best practices to help our clients manage risk through the exchange of information and the sharing of expertise.
Risk management plays an important role in farm business decisions. Farmers can face multiple and simultaneous risks, even catastrophic events, like flooding and drought, which can cause significant uncertainties and the possibility of substantial loss.
Our Ag and Business Bankers help their clients with a comprehensive approach to contingency planning that incorporates operating risks associated with crop prices, input costs and yields, financial risk related to the way producers finance their operations, whether through debt or owner equity, and sound operating practices.
To enhance your success, our advisory approach will help you set clear goals, identify the resources and skills to implement and monitor a risk management plan, and offer solutions to help you control and prioritize risks associated with farm performance.
Short-term loans can help you run your farm whether it is financing for land rent or lease payments, repairs, fuel, payroll for farm labor, insurance premiums, taxes or margin calls.
An operating line of credit used for purchases such as supplies, fertilizer, farm chemicals or seeds, when tied to a business checking account, can sweep excess funds back to your line saving you time and money. Lines of credit are available on an annual basis for a set amount or an open-ended basis so you can draw on the line when needed. Advances and payment schedules are tailored to fit your specific operation.
American Federal is a participant in several government guaranteed loan programs, including FSA, SBA and USDA Business and Industry.
Local decision making and strong relationships with the FSA, SBA and USDA help our clients secure financing to reach their farm and business goals.
American Federal is a Preferred Lender with the United States Department of Agriculture’s Farm Service Agency (FSA), the highest level an institution can obtain.
Our Ag and Business Bankers have the experience and expertise to understand the processes and procedures to work effectively with the FSA. A beginning farmer program is available, as well as guaranteed loan programs for real estate, equipment and operating loans. Contact your local Ag and Business Banker for information on the programs.
American Federal works with the United States Department of Agriculture’s (USDA) Business & Industry program to make a variety of business financing solutions available to business clients in any industry for specific purposes in communities smaller than 50,000.
A USDA guaranteed loan provides solutions similar to some SBA loans, but for larger projects requiring larger loan amounts. Unlike SBA programs, USDA loans may be made to cooperatives and nonprofit entities.
Contact your American Federal Banker for more information on any of these programs.