Starting a farm? Think long-term. The goal is longevity; create something you can admire and be proud to own, a lasting achievement. This takes time and work. Financial decisions are crucial for your farm to thrive. Plan wisely! Securing the proper financing (for land, equipment, or expansion) is a key step in building that future. Need a farm loan? Farm Mortgage Capital provides private, long-term financing for farmers just starting out or looking to grow.
With loan amounts starting at $400,000, our programs are built for those ready to take their next big step. Backed by over 35 years of hands-on experience in agricultural lending, we offer flexible terms, competitive rates, and tailored solutions that support your vision for success.
Assess Your Financial Needs Before Applying
Understanding your financial position is the first step toward securing the right funding for your farm. The more clearly you define your needs and goals, the easier it becomes to identify financing options for new farmers that truly align with your operation.
Project the Return on Investment: Before taking out a loan, ask yourself whether the asset or upgrade you’re considering will generate revenue in a realistic timeframe. If the return isn’t strong enough to justify the cost, it may be better to hold off until your operation is in a stronger position.
Use a Dynamic Budget: Think of your budget as a living document, not just a static spreadsheet. A well-maintained financial plan helps you forecast seasonal income, manage expenses, and pinpoint where financing is truly needed. This clarity also strengthens your loan application and supports smarter decisions over time.
Evaluate Current Performance: Take a close look at how your farm is performing. Are there assets draining your resources without delivering returns? If so, reallocating capital into higher-performing areas could make your farm more efficient and attractive to lenders. A focused, financially healthy operation is better positioned for long-term success.
Choose Private Financing Over Government Programs
While government loans are often marketed to beginning farmers, they come with long wait times, rigid qualifications, and limited flexibility. At Farm Mortgage Capital, we take a different approach. We offer loans to start a farm that are tailored, accessible, and designed to meet the demands of modern agriculture.
Our loans are not constrained by federal program requirements. Instead, we assess your operation’s income potential, assets, land value, and future growth goals. This means you get funding that reflects your farm’s true potential, not a generic standard.
Understand What Farm Mortgage Capital Requires
We believe in clear, upfront communication about what it takes to qualify for funding. Here’s what you need to know:
- Minimum loan amount: $400,000
- Minimum credit score: 660 (from at least one credit bureau)
- Minimum acreage: 40 acres (exceptions made for permanent planting)
- Down payment: 30% or land of equivalent value as collateral
- Debt-to-asset ratio: 60% or better after closing
- Location: Property must be in the United States
- Income: Must cover all personal and farm-related debts
If you’re unsure whether you meet these criteria, our team will guide you through an eligibility review to help clarify your next steps.
Compare Interest Rates, Loan Terms, and Repayment Schedules
When comparing financing options, it’s important to look beyond just the approval amount. Your interest rate, term length, and repayment structure will directly impact your farm’s profitability and financial health.
- Understand the Impact of Interest Rates: Even a small difference in interest rates can lead to significant changes in your total loan cost. Our rates are competitive and designed to keep long-term financing affordable while preserving your working capital.
- Choose the Right Term Length: Shorter-term loans mean faster repayment and lower total interest, but higher monthly payments. Longer-term loans offer smaller payments, making cash flow easier to manage, especially for seasonal operations. We help you choose what’s right based on your income rhythm.
- Flexibility in Repayment: We offer repayment schedules that align with your harvest cycle, monthly, semi-annual, or annual. You also won’t face any prepayment penalties if you decide to pay off your loan early.
Start Your Application and let our team help you select a structure that complements your cash flow.
Understand Collateral and Equity Requirements
Collateral is a key part of any farm loan. At Farm Mortgage Capital, we offer options that protect your business while still giving you access to the capital you need.
- For purchases, be prepared with a 30% down payment or additional farmland as collateral.
- For refinancing, you’ll need at least 30% equity in your current property.
- Your land and all assets post-purchase must reflect a 60% debt-to-asset ratio.
We review all your assets (land, equipment, buildings, and more) to build a secure and scalable lending profile.
Don’t Overlook Additional Costs and Fees
In addition to the loan principal and interest, new farmers should be aware of additional costs tied to financing:
- Application fees
- Land or asset appraisals
- Title and closing fees
- Equipment or renovation loans, if bundled into financing
Our team is transparent about all costs from the start, so you’ll never be caught off guard. We believe that clear communication builds strong partnerships and smart financial decisions.
Work With a Lending Partner Who Understands Farming
Traditional banks often lack experience in agriculture. Their rigid processes don’t reflect the realities of crop cycles, commodity pricing, or unpredictable weather. At Farm Mortgage Capital, we’ve worked with farmers for over three decades. Agriculture is our only focus, and it shows in how we serve you.
Whether you’re launching a cattle ranch in Texas, a citrus grove in Florida, or a vineyard in California, we know how to build loan solutions that support your business from seed to sale.
Our private farm loans are customized to your needs, timeline, and long-term goals, not a one-size-fits-all formula.
Get Started With a Loan Built for Your Land
Launching a farm business is a serious undertaking, but with the right financing, it becomes a sustainable, rewarding enterprise. At Farm Mortgage Capital, we provide more than capital; we provide a partnership. We take the time to understand your land, your operation, and your vision for the future.
Ready to get started? Contact us today to speak with a loan officer and find out which financing solution is right for you.
Let’s turn your farming vision into a legacy.