Farm Operating Loans
Seasonal credit for seed, fertilizer, fuel, feed, payroll and other operating expenses.
Start with the actual financing need
Seasonal credit for seed, fertilizer, fuel, feed, payroll and other operating expenses. Estimate the funding gap, expected use of proceeds, and a repayment calendar. Compare lender terms using the same loan amount, loan duration, payment frequency, fees and collateral assumptions; do not choose financing by advertised interest rate alone.
- Write the dollar amount and use of funds.
- Estimate repayment capacity from documented farm cash flow.
- List collateral, down payment and operating risks.
- Obtain the complete written lender terms.
Questions to ask a lender
- What is the APR, repayment schedule and total interest?
- Are there origination, appraisal, guarantee or early payoff charges?
- Is the rate fixed or variable, and what is the adjustment formula?
- Which farm assets are collateral, and who guarantees the loan?
- How are seasonal cash flow shortages handled?
Continue learning
USDA Service Center Appointment ChecklistWorksheet and research guideFarm Credit System BasicsWorksheet and research guideAgricultural Credit Union QuestionsWorksheet and research guideComparing Three Farm Loan OffersWorksheet and research guideFarm Lender Interview ChecklistWorksheet and research guideLoan Terms Negotiation NotesWorksheet and research guide
Official lender and government resources
Check current program terms, eligibility, geography, availability and rates directly with the agency or licensed financial institution. This directory does not issue loans.