Farm Loans

Alternatives to Farmer Mac to borrow against for farm land, equipment, grain, and cattle.

North American farm and ranch operations where land is the primary collateral will potentially qualify for farm financing. Aside from farm real estate loans -- equipment, grain, cattle, and other readily liquidate-able assets can serve as supplemental collateral as well. Our focus is on farms with financing needs ranging from $1 million to $20 million (as low as $500,000 and as high as $100 million for attractive opportunities).

To qualify for a farm loan, borrowers should provide:

• Clear proof of collateral value via a current MAI appraisal or an acceptable alternative method
• Personal guarantee(s)
• Clear title to lender through a first deed of trust or mortgage

Farm operations of interest include but are not limited to grain, citrus, cattle, dairy, and related activities where the underlying goods being produced are widely traded and quoted. As such, we are not interested in "exotic" types of farming operations where the products being produced do not enjoy a wide market following.

As an alternative to Farmer Mac, we have a strong preference for large existing farms as opposed to first-time purchase financing for new farmers. Likewise, we generally prefer situations where the loan-to-value (LTV) is below 60% and the money is only needed for a short period of time (two to three years, up to five years max). Because of that, borrowers should be able to demonstrate that within two to three years they will be able to refinance the loan through a more traditional source, such as a bank.

Our farm loans are typically structured as interest-only notes with the balance (the original borrowed amount) due at maturity.