10 Finance Tips That Put Farmers First®

FBN Network

Jun 14, 2024

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From choosing between repairing or purchasing new equipment to deciding when to purchase farmland, our FBN® Finance team can help you make informed financial decisions for your farm. 

Here are 10 helpful tips our team members and other experts have shared in previously published FBN Finance blogs. Click on the blog links to read the full articles. 

1. Owning Farmland Can Be a Good Investment, Even If the Mortgage Rate Is High

It can be challenging to time the market to get the best parcel of land at the lowest mortgage interest rate. However, some experts argue that investing in farmland is often a good idea because it’s like “an investment in gold, plus a coupon,” as Bruce Sherrick, professor at the University of Illinois, put it, and “the long-term potential for income generation and capital appreciation” may outweigh interest rate fluctuations, as Michael Lauher, a farm manager, said. 

Read How Do Interest Rates Affect Farm Mortgage Payments?

2. Don’t Overlook Terrain Comparisons When Buying Farmland 

While many farmers may already know to consider comparable sales when considering a new property, terrain comparisons are often overlooked. Farmland slope, elevation, and the terrain wetness index are critical factors to consider when assessing whether the land is suitable for your unique ag operation.

Read Why Do Terrain Comparisons Matter When Buying Farmland?

3. Hiring a Custom Applicator Can Help Keep Costs Low

Custom applicators, licensed professionals who specialize in ag chem applications, are often hired because they use their own equipment, saving farmers from having to purchase and maintain expensive sprayers.

Read When to Hire a Custom Applicator vs. Buy Spraying Equipment

4. An Online Forum Can Be a Good Place to Find Ag Equipment 

The right machinery can unlock your farm’s true potential. Designed for specific operational needs, farm equipment is often highly specialized, though, so it’s important to know where to look. A forum can be a good place to find deals and to engage in online discussion about equipment.  

Read Where to Find Farm Equipment for Sale

5. Diversify Your Income

Having additional revenue streams can boost cash flow and help you overcome financial strain during any potential down years. Partnerships with local businesses, trucking, and other alternatives can diversify your income.

Read 10 Ways to Manage Your Farm Finances for the "Down" Years

6. Seasonal Maintenance Can Reduce the Need for Equipment Repairs 

Agricultural equipment is likely one of your most costly investments. To keep your machinery in tip-top condition, it’s important to do spring and winter maintenance. 

Read 4 Critical Reasons to Conduct Spring Equipment Maintenance

7. Purchasing New Equipment Instead of Repairing Could Actually Save You Money (Really!)

Sometimes, it’s simply not worth repairing broken or finicky equipment. It can lead to downtime, its technology may be more limited than newer models, and it can even potentially be a safety risk. 

Read When Should You Repair vs. Replace Farm Equipment?

8. Ask the Right Questions to Get a Good Deal on Your Next Equipment Purchase

Ag equipment prices surged 15% in 2021. So how do you know if you’re getting a good deal? Asking the seller leading questions is a great way to start, and it also primes them to offer you a deal on the machinery you’re considering purchasing. 

Read How to Negotiate a Fair Farm Equipment Price

9. Using No Till Can Save Time and Fuel Costs

“There is a time savings component when I plant using no-till on the field,” David Iverson, operator of Iverson Farm in Astoria, South Dakota, told FBN. “Because I only have to focus on planting and do not have to do any prior tillage work, I save fuel and the expense of time with running the operation.”

Read Farmers Reveal Cost Savings from Regenerative Ag [Q&A]

10. Farmland Capital Can Make Purchasing Land More Accessible for Beginning Farmers

Farmland capital levels the playing field for beginner farmers to purchase land. It’s similar to partnering with a relative to purchase farmland in that both the farmer and the relative are participators in both the income and the farm’s value.

Read How to Buy Farm Land As a Beginning Farmer

Get Financing Tailored to Your Ag Operation from FBN Finance

FBN Finance helps family farmers like you finance ag operations for today and for the next generation. We’ve committed more than $2 billion and served more than 2,400 farmers. We’re ready to help you too. 

We offer great rates, a secure online application process that will save you time, and exceptional service. In addition to having an average 15 years of ag finance experience each, many of the experts on our finance team are farmers themselves so they understand the unique financing needs of farmers.

FBN Finance offers qualifying farmers: 

  • Farm land loans to help you purchase new land, refinance, or make improvements to your ranch

  • Farmland capital to help you expand your operation, lower debt payments, and cash out your equity 

  • Farm equipment loans to help you purchase new or used equipment, upgrade or repair your current equipment, or purchase an irrigation system

  • Farm operating lines to help you buy inputs, pay rent, or cover labor costs

Get a Customized Rate


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Financing offered by FBN Finance, LLC and its lending partners. Available where FBN Finance, LLC is licensed. Terms and conditions apply. To qualify, a borrower must be a member of Farmer’s Business Network, Inc. and meet all underwriting requirements. Interest rates and fees will vary depending on your individual situation. Not all applicants will qualify. NMLS ID: 1631119.

The material provided is for information purposes only. It is not intended to be a substitute for specific professional advice. Neither Farmer’s Business Network nor any of its affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of the statements or any information contained in the material and any liability therefore is expressly disclaimed. The information and opinions expressed by others in this material are their own and are not endorsed or approved by FBN or its affiliates.

FBN Network

Jun 14, 2024

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