Finance


Nov 23, 2022

by FBN Network

Whether you’re planning to expand your operation with a new land purchase, refinance your farm or make improvements to your ranch, the FBN Finance team is ready to help you secure the funding you need to build a stronger financial future.  Get customized financing for your FBN Finance farm land loan in five straightforward steps:  1. Apply in Minutes Complete the brief FBN Finance land loan application securely online or contact a member of our advisory team for additional support. With an average of 15+ years in Ag finance, our loan advisors are dedicated to helping family farmers and happy to use their experience to help guide you. Once submitted, you can track the progress of your application as it is reviewed by our team.  [READY TO GET STARTED? See the FBN Finance land loan application here.]  2. Upload Your Supporting Documents With a guided process to help you complete the submission process more easily and quickly, our secure system will walk you through your necessary document uploads.  3. Receive a Decision Next, our dedicated FBN Finance loan advisors will review your application and determine your approval in as little as 48 hours.  [ ESTIMATE YOUR PAYMENTS : Use the FBN Finance Land Loan Payment Calculator to estimate your potential land loan payments.] 4. Value Your Farm Land If your application and documents are approved, an appraiser will then assess the value of your land. Note that your operation must have a minimum of 10 acres to be eligible for a land loan from FBN Finance.  5. Get Funded Once your farm land appraisal is complete, you’ll secure your land loan interest rate, sign the final documents, and receive your loan funding. [CURRENT RATES: Click here to see the latest FBN Finance farm land loan rates.] Plan Ahead by Estimating Your Land Loan Payments At FBN , our goal is to always put Farmers First® by helping you maximize your operation’s ROI and secure a stronger financial future. Our farm land loan calculator brings actionable transparency and visibility to estimated rates and fees up front to help you better understand your options for buying farm land.   The farm land loan calculator empowers you to compare different loans before purchasing your land to see which options will best suit your operation. The feature will ask you a few simple questions, including your desired loan amount (minimum of $75,000) , estimated land value and credit score, before delivering an estimate of your semi-annual or annual loan payments based on your information and current rates. You’re always welcome to contact an FBN Finance advisor with any questions or for more information on land loans from FBN Finance.  Ready to apply for a land loan? Click here to start your application or complete the form below to have a member of our FBN Finance team guide you through the process.  Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, and “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc.  Terms and conditions apply. Land financing offered by FBN Finance, LLC, provided in connection with Farmer Mac and our underwriting partners, and is available only where FBN Finance, LLC is licensed. To qualify, a borrower must be a member of Farmer’s Business Network, Inc., and meet the underwriting requirements of FBN Finance, LLC and its lending partners. All credit is subject to approval and underwriting. Interest rates and fees will vary depending on your individual situation. Not all applicants will qualify.


Nov 19, 2022

by FBN Network

With a Farmers First® mindset at the forefront of everything we do at FBN®, we developed our new Farm Land Loan Calculator to bring much needed transparency to the typically ambiguous farm land loan process. By estimating rates and fees up front, the free calculator helps you effectively plan and strategize your financial options for future land purchases, which can include farms, ranches, timberland, and hunting land. Compare different loan options prior to a land purchase to determine which path forward will work best for your Ag operation.  [READ: How We Made Calculating Farmland Payments Easier Than Ever] How to Estimate Land Loan Payments To estimate your land loan payments with FBN Finance, use the Farm Land Loan Calculator by:  1. Answering a few questions to provide basic information about your loan, including:  Your desired loan amount (minimum of $75,000 required) Estimated land value and acreage (minimum of 10 acres required) Your credit score 2. Receiving an estimate of your semi-annual or annual loan payments based on the information you provided and our current rates at FBN Finance . To proactively calculate your farm land loan payments and determine the best financial option for your farm, try the Farm Land Loan Calculator here or complete the form below to contact an FBN Finance advisor for further assistance. Farm Land Loans from FBN Finance At FBN , our team strives to put Farmers First by helping you secure a successful financial future for your Ag operation. Whether you’re planning to expand your operation with a new land purchase, refinance your farm or make improvements to your ranch, the FBN Finance team is ready to help you secure the funding you need to build a stronger financial future. Learn more about our farm land loan options here.  Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, and “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc.  Terms and conditions apply. Land financing offered by FBN Finance, LLC, provided in connection with Farmer Mac and our underwriting partners, and is available only where FBN Finance, LLC is licensed. To qualify, a borrower must be a member of Farmer’s Business Network, Inc., and meet the underwriting requirements of FBN Finance, LLC and its lending partners. All credit is subject to approval and underwriting. Interest rates and fees will vary depending on your individual situation. Not all applicants will qualify.


Nov 17, 2022

by FBN Network

[Do you know what your farmland is worth? Unlock the free Illinois Farmland Values Report from the FBN® Research team today.] Fueled by high commodity prices and low interest rates, U.S. farmland prices increased at a record pace in late 2021 through the first half of 2022. The end of fall harvest ushers in the peak season of farmland buying and selling. Will farmland values continue to climb this year?  While it is impossible to forecast precisely how these factors will play out in future months, there are a few key trends in farmland values that will continue to shape the farmland marketplace. Increasing Farmland Valuation Trends: With high commodity prices and government payments augmenting farm income, American farmers had more cash savings available to buy more land, thus escalating farmland values.  Historically low interest rates for land loans enabled farmers to obtain larger loans to purchase more land.  Low interest rates for bonds and treasuries, which were below inflation, meant that those alternative investments were less attractive, while farmland as an investment asset quickly became more appealing for farmers. Current mortgage rates are still below inflation, which is typically associated with positive increases in farmland values. (See the Farmland at Risk: An FBN Special Report for more information on these trends.)  Persistently high inflation makes farmland an attractive hedge due to its historical capacity to increase value during inflationary periods.  Decreasing Farmland Valuation Trends:  Since the start of 2022, the Fed interest rate has increased from 0.08% in January to 3.08% in October. This is one of the sharpest interest rate increases in a generation.  Higher interest rates generally reduce the attractiveness, and therefore value, of any risk-based asset class as risk-free alternatives become more attractive from a return and price-to-earnings perspective.  Agricultural production costs have increased substantially, primarily mainly by higher fuel and fertilizer costs. (See the 2022 FBN Fall Fertilizer Price Transparency Report for more information on these price increases and related fertilizer usage trends).  High costs reduce farm profits, which could slow the upward momentum in farmland values.  Illinois as a State-specific Case Study Illinois farmland prices surged to record levels in 2021 and early 2022, with an above average volume of higher-quality parcels for sale in some regions. Across most of the state, the price of parcels with excellent-quality soil grew at a faster pace than parcels with lower-quality soils. This period also boasted a record-high farmland acreage sales volume, with many sales happening even with crops still standing in the field. Though it is still early, trends in the data from the first part of 2022 may signal what’s to come. To date in 2022, farmland sales volume on an acreage basis is lower than 2021 figures and closer to the average of previous years. That may indicate that farmland owners tempted to sell by high prices did so already, and volume is now returning to average levels. However, decreasing sales volume does not necessarily signal decreasing prices. In fact, sales for the first part of 2022 indicate a slight increase in farmland prices for lower quality soils and similar prices for high quality soils, using the Illinois Soil Productivity Index (ILPI) as a measure of relative quality.  This may indicate that earlier increases in farmland values have now spread to lower- and middle quality farmland. Importantly, observed trends vary significantly across the state. District-level analysis is essential for understanding how soil quality, yield, and farm production revenue shapes trends in farmland values. For more insights into the current state of farmland valuation in Illinois, including statewide and regional trends, download the latest report from the FBN Research team. Based on soil quality data, land productivity analysis, historical ag yield data, and real estate transaction records, the team provides expert analysis around the current land values throughout nine Illinois regions. Fill out the form below or click here to unlock the free report .  Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, and “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc.  The material provided is for information purposes only. It is not intended to be a substitute for specific investment, business or any other professional advice. Neither Farmer’s Business Network, Inc. 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.


Nov 11, 2022

by FBN Network

Do you know how much your farmland is worth?  FBN®’s latest publication, the Illinois Farmland Values Report (Fall 2022) , provides timely, data-driven insights about Illinois land markets and valuations to empower you in future farmland transactions both in Illinois and other states.  Unlike any other land valuation publication, FBN ’s new report delivers deep insights into broad U.S. market conditions based on multiple data points, including:  Soil quality Land productivity Historical ag yield data  Real estate transaction records The report is the first in a new series of biannual FBN reports that will be published for a wide swath of U.S. states in the coming months. Because land values change over time, it’s important for farmers to have access to the most timely data available to make informed, effective decisions for their operation.  By downloading the free report, you’ll unlock access to expert analysis on potential land valuations for farms within nine different Illinois regions to compare to your own local and state land market. The Illinois Farmland Values Report (Fall 2022) includes regionally specific data for the following areas:  Eastern Illinois East Southeastern Illinois Northeastern Illinois Northwestern Illinois Southeastern Illinois Southwestern Illinois Western Illinois West Southwestern Illinois Central Illinois Farmland is an essential asset for most farmers in terms of value and importance for their long-term success. At FBN , our team of data scientists and appraisers puts Farmers First® by continuously monitoring the farmland market to provide transparent, timely and actionable insights. We believe that delivering trusted reporting is essential to creating a better farmland marketplace that’s more fair for farmers — whether buying, selling, or refinancing.  Unlock the Free Report Fill out the form below to get your free copy today and unlock access to expert analysis.  (Members can also access this report and other recent expert analysis in the Reports section of the FBN app.) Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “FBN”, and "Farmers First" are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc.  The material provided is for information purposes only. It is not intended to be a substitute for specific investment, business or any other professional advice. Neither Farmer’s Business Network, Inc. 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.


Nov 10, 2022

by FBN Network

For veterans who are interested in information about farm related financial programs, we’ve compiled a list of great resources that may help your operation.  Financial resources Grant and loan programs for military veterans provide vital resources for beginning farmers and ranchers. How to Buy Land as a Beginning Farmer Beginning Farmers and Ranchers Loans for Veterans Farm Service Agency Direct Farm Ownership Loans Department of Veteran Affairs Farm Loans: Home Loans for Rural Residents Educational and training resources The USDA and numerous partners offer agricultural education and programs to help veterans gain the knowledge essential for success. Alternative Farming Systems:Sustainable Agriculture Education and Training Directory Farmer Veteran Coalition Education Veterans To Farmers Business planning resources Financial and business planning courses can significantly help military veteran farmers establish and maintain successful farming or ranching businesses. Land Stewardship Project: Farm Beginnings Class Farm Business Planning Online Course Beginning Farmers: Military Veteran Farmer Training  From all of us at Farmers Business Network: Thank you for your service. Disclaimer: The material provided is for educational purposes only. It is not intended to be a substitute for specific individualized tax, business, legal, investment or professional advice. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner, or investment manager. Neither Farmer's Business Network, Inc. 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. Financing offered by FBN Finance, LLC and its lending partners. 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. Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. 


Nov 10, 2022

by TJ Wilson

As we approach the end of 2022 and look ahead to the upcoming 2023 season, now is the time to keep a few key financial considerations in mind.  1. 2023 Crop Year Planning   It’s never too early to start reviewing projected cash flows for the next crop year and making financial plans around those expectations. Strategizing your plan for the next year will enable you to start working proactively on a number of other financial actions on this list and be more prepared as you work on each of those items.  Getting your plan together early will also help you plan your future input purchases , implement hedging strategies, and understand how much working capital you will need for the upcoming season.  [STRATEGIZE: Get greater control of your crop input plan with the new FBN® Acre Pack online crop planning tool.] 2. Operating Loan Renewals & Interest Rates  Operating line renewals are just around the corner. In the current volatile environment, producers should be proactive in securing their lines of credit earlier. Input prices are still elevated and the need for a larger line of credit is very real this year, especially with the potential timing of purchases.  As producers renew and/or expand their operating lines, they should also keep a close eye on their interest rate and the structure of that rate. The Federal Reserve is anticipated to implement additional interest rate increases by the end of the year . This will have a direct impact on the borrowing rates of operating lines, so producers should consider getting rates locked in now. When working on your line of credit for the upcoming year, having your crop plan already put together will facilitate that process to ensure you get the borrowing capacity and flexibility you need from the start.  [LEARN MORE: Apply online to get your FBN approval decision instantly, with rates starting at 5.78%] 3. Evaluating Working Capital Needs and Risk Management Plans   Reviewing your working capital position is a constant on an operation. Cash is always king.  As we approach year’s end, it is important to know your working capital needs for the remainder of the year and going into the spring. Understanding your working capital needs and position allows you to make better informed decisions regarding input purchases and commodity sales.  Working capital also plays a key role in the evaluation and implementation of a risk management plan for the coming year. Depending on the risk management strategy you use, it can cause a strain on working capital. By this time, you have likely done your crop plan for the next year and have a good understanding of what your input costs will be if you haven’t already locked them in. Now it is time to figure out how you will protect your investment.  Understanding your cost of production will allow you to start making decisions around implementing your risk management plan.  [WATCH: Working Capital and Farm Risk Management] 4. Locking in Input Supply  Last year, we saw major challenges with the supply chain and producers being able to get their hands on supply. Being proactive and locking in supply early this year will be very important.  This applies not only to locking in prices, but also to securing deliveries and taking possession of products while they are readily available. Suppliers are also looking to lock in their supply this year, so working with them early will help in securing both a competitive price and the ability to guarantee a supply.  [LISTEN: Special FBN® Podcast: The State of the Global Supply Chain in 2021] 5. Tax Planning   With commodity prices at their current levels this year, many producers will want to be more proactive in their year end tax planning . Does it make sense to prepay input, defer income, make improvements, or upgrade equipment, for example?  Because every operation is different, it’s important to work with your accountant to plan for your operation’s unique situation. It is never too early to start having these conversations with your accountant and planning ahead.  [ READ: It’s Tax Season. Here Are 5 Ways Farmers Can Get Ready. ] Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo and “FBN” are trademarks or registered trademarks of Farmer's Business Network, Inc. Financing offered by FBN Finance, LLC and its lending partners. 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.


Oct 19, 2022

by Kathy Bogardus

Despite efforts by the Federal Reserve to slow inflation and skyrocketing interest rates , farmland as an asset class has remained steady. While farmland is influenced by interest rates, it has less connectivity to broader economic signals and is fairly insulated from the ongoing issues that are plaguing the U.S. economy.  There is strong confidence generally speaking that farmland real estate will continue to hold value unless interest rates get well above inflation rates and hold for a very long time. It would take a sustained period of the foregoing for farmland values to be affected in a notably negative way. Recent data from the USDA shows U.S. farmland values actually increased 12.4% between June 2021 and June 2022, but the future of such values is somewhat uncertain.   Even if farmland values were to soften in coming years, the downturn would likely be shallow and not persistent like it was in the 1980s. The ‘80s were plagued with high inflation rates, and energy and food price shocks that started in the ‘70s, which is different from today’s economic climate.  [Learn more about how the economic shocks of 2022 are affecting farmland values in our recent FBN Research report. Unlock the free report today. ] While the most limiting resource in agricultural production is farmland, a growing and more affluent population craves a more protein-centric diet. Thus, there will be an ever increasing drive and need for grain.  Today, we have global grain shortfalls from weather and war which are having short term effects on global markets but farmland values should continue to trend around fair value based on projected cash flows and produce favorable returns for ranchers and farmers.  Try our new farm land loan calculator Looking to capitalize on farmland real estate? Our goal is to always put Farmers First® by helping you to secure your financial future. That’s why we’re excited to share our new farm land loan calculator with you. This new tool will bring transparency and visibility to estimated rates and fees up front to help you better understand your options for buying farmland.  Now, you’ll be able to compare different loans before purchasing your land to see what works best for your operation. How to estimate your payment  There are a few things you’ll need to know to get started using the loan calculator. Here’s how it works: Answer a few basic questions that include: Your desired loan amount Estimated land value Your credit score You will receive an estimate of your semi-annual or annual loan payments based on the information you provide and our current rates. Start your land loan application today or contact an advisor if you have any questions.  To calculate your land loan payments, try our new farm land loan calculator or contact an advisor to assist in completing your application.  Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network” and “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc. Financing offered by FBN Finance, LLC and its lending partners. 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. Terms and conditions apply. Land financing offered by FBN Finance, LLC, provided in connection with Farmer Mac and our underwriting partners, and is available only where FBN Finance, LLC is licensed. To qualify, a borrower must be a member of Farmer’s Business Network, Inc., and meet the underwriting requirements of FBN Finance, LLC and its lending partners. All credit is subject to approval and underwriting. Interest rates and fees will vary depending on your individual situation. Not all applicants will qualify.


Oct 14, 2022

by Mark Wilson

We sat down with Director of FBN® Finance Sales TJ Wilson and FBN Risk Management Advisor Josh McClure to discuss the challenges producers see when it comes to working capital and their risk management plans. What you’ll learn Working capital shortage (1:07) Common mistake #1 - Not working with an advisor (1:37) Common mistake #2 - Not knowing your cost of production (1:58) Know your cash flow (2:09) Utilizing more risk management tools (3:21) Focusing on farm profitability (4:20) Watch now Get started today When you're ready to get started, fill out the form at the bottom of the page or call us directly. Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network” and “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc. Financing offered by FBN Finance, LLC and its lending partners. 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. Terms and conditions apply. Land financing offered by FBN Finance, LLC, provided in connection with Farmer Mac and our underwriting partners, and is available only where FBN Finance, LLC is licensed. To qualify, a borrower must be a member of Farmer’s Business Network, Inc., and meet the underwriting requirements of FBN Finance, LLC and its lending partners. All credit is subject to approval and underwriting. Interest rates and fees will vary depending on your individual situation. Not all applicants will qualify.


Sep 29, 2022

by Kathy Bogardus

Purchasing inputs is one of the most important and vital decisions you’ll make every year for your operation. But how do you pay for your inputs?  When you’re buying inputs, you’re weighing many factors like flexibility in your financing options, cash flow management, low interest rates and overall cost savings. So how do you make the right decisions for your operation when it’s time to start buying inputs every year? In the past when you shopped on FBN Direct® for inputs, you had the option to pay for your purchase with cash, credit cards or an input loan offered by FBN®.  Now, you’ll be able to select an additional financing option directly at check out: an operating line of credit to purchase your inputs, plus unlock 0% interest financing on those inputs for qualified farmers.*  FBN® Finance ’ s flexible financing options give you the power to purchase inputs and do much more for your operation. Let’s look at the difference between input loans and operating lines of credit. What are input loans? When you apply for an input loan with FBN® Finance, you’ll go through a straightforward application process that can be approved in one business day.  Input loans currently only apply to FBN Direct input purchases. These loans are non-revolving lines of $10,000 - $300,000 with a fixed rate. One advantage of using an input loan is that there are no payments due until January 1, 2024. And if you close by January 20, 2023, you’ll get 0% interest on qualifying purchases of FBN Direct inputs. The qualifying purchase requires that you make a minimum purchase of $50,000 by December 23, 2022, or a $75,000 minimum purchase by January 20, 2023, to qualify for 0% interest on FBN Direct inputs purchases all season long.  What’s an operating line of credit? Operating lines of credit are fixed rate, revolving lines of $250,000 - $1 million. FBN® Finance operating lines can be used for many approved ag operating expenses and are not limited to only purchasing inputs. With an operating line of credit, you can buy inputs from FBN (or other vendors), pay for rent or labor, cover the cost of equipment or repairs, or finance other qualifying expenses. When you close by December 9, 2022 you’ll qualify for 0% interest on FBN Direct input purchases all season long. The qualifying purchase requires that you make a minimum purchase of $45,000 by December 9, 2022. And you’ll be able to defer payments with your operating line until March 1, 2024.  Which financing option is right for you? This table outlines the main differences between the two financing options available. But you also have a third option.  Upgrade your input loan with an operating line from FBN Finance to do even more. Qualified farmers who are approved for both loans will have up to $1.3 million in total spending power!  Apply now Learn more about input loans and operating lines of credit and get started with your application today.  Shop for inputs With an incredibly diverse portfolio of products, FBN Direct has the inputs you need, when you need them. Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network” and “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc. Financing offered by FBN Finance, LLC and its lending partners. 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. Terms and conditions apply. Land financing offered by FBN Finance, LLC, provided in connection with Farmer Mac and our underwriting partners, and is available only where FBN Finance, LLC is licensed. To qualify, a borrower must be a member of Farmer’s Business Network, Inc., and meet the underwriting requirements of FBN Finance, LLC and its lending partners. All credit is subject to approval and underwriting. Interest rates and fees will vary depending on your individual situation. Not all applicants will qualify. *Qualified farmers who are approved and close an Operating Line of Credit through FBN® Finance of $250,000 to $1,000,000 between September 1, 2022 - December 9, 2022, make a minimum purchase of $45,000 from FBN Direct® and payoff the balance in full by March 31, 2024 are eligible to receive a promotional interest rate of 0% when using the Operating Line of Credit  to finance purchases of input products made through FBN Direct® between September 1, 2022 - August 31, 2023. Qualifying input products include crop protection, adjuvant, crop nutrition, seed, animal health and livestock feed. Advances on the FBN® Finance Operating Line that are not for the purchase of input products from FBN Direct® will be charged interest at the stated (non-promotional) contract rate in the Operating Line of Credit loan agreement.* Approved farmers who close a FBN® Finance Operating Line and make a minimum $45,000 purchase from FBN Direct® by December 9, 2022 will receive the benefit of automatic qualification for the 0% Club from FBN Direct®. The 0% Club offers qualified farmers a promotional rate of 0% interest on purchases of input products only made through FBN Direct® between January 21 - August 31, 2023. Qualifying input products include crop protection, adjuvant, crop nutrition, seed, animal health and livestock feed.  *Payments for all amounts owed under the associated FBN® Finance Operating Line of Credit are due March 1, 2024.  If the total balance for all amounts owed is not paid in full by March 31, 2024, interest charges on all purchases of input products made through FBN Direct® between September 1, 2022 - August 31, 2023, using an Operating Line of Credit through FBN® Finance will be imposed from the purchase date at the stated (non-promotional) contract rate in the Operating Line of Credit loan agreement.   FBN Finance, LLC commercial operating lines of credit are offered by FBN Finance, LLC and are available only where FBN Finance, LLC is licensed. Input financing provided in connection with our financing partners. To qualify for a financing offer, a borrower must be a member of Farmer’s Business Network, Inc. and meet the underwriting requirements of FBN Finance, LLC and its lending partners. All credit is subject to approval and underwriting. Interest rates and fees will vary depending on your individual situation. Not all applicants will qualify. FBN Direct products and services and other products distributed by FBN Direct are offered by FBN Inputs, LLC and are available only in states where FBN Inputs, LLC is licensed and where those products are registered for sale or use, if applicable. If applicable, please check with your local extension service to ensure registration status. Nothing contained on this page, including the prices listed should be construed as an offer for sale, or a sale of products. All products and prices are subject to change at any time and without notice. Terms and conditions apply.


Sep 21, 2022

by Kathy Bogardus

As inflation continues to skyrocket, the Federal Reserve met once again to try to stabilize the economy. And as many analysts predict a possible recession, consumers are once more bracing for a rate hike of at least three-quarters of a point. This is the third increase in less than 4 months as we saw a rate hike of 0.75% back in June and July. And as FBN’s Chief Economist Kevin McNew predicted, the Fed is raising interest rates once again.  With inflation at the highest it’s been in over 40 years, the Fed has to continue to try to curb this escalating situation. But the global market has been impacted by external factors like the ongoing conflict in Eastern Europe.  By increasing interest rates, the Fed is actively slowing down the economy which leaves the risk of recession higher than ever. And as the economy continues to shift, we turned to the experts to better understand this overwhelming issue. What should farmers focus on We previously advocated for farmers to refinance and take advantage of the lower interest rates when they were available. If you locked in a lower rate but still need cash, we suggest you consider our Farmland Capital product. This program is similar to a second mortgage in that FBN will take a second lien position to whatever lien currently exists, which means that you won’t lose that low rate interest loan.  Another option in an increasing rate environment is for farmers to consider locking in rates with longer terms. Farmers who can lock in rates for the next 10-30 years may have some certainty that they’ll continue to remain profitable. And if rates drop, they can prepay and refinance at lower rates. Locking in for the long term may be the right thing to do now for many. Review our great land loan rates across a variety of term options. With farm costs not going down anytime soon due to the cost of both inputs and fertilizer, it’s good to look at ways to effectively run your operation. While the cost of fertilizer is likely to be elevated for some time, it’s worth looking at adopting technology to make input usage more efficient. Thinking about strategic alternative investments to improve your ROI is a sound option.  Is U.S. farmland at risk? Farmland real estate has been a good long-term investment but with the uncertainties of the current economic climate, you might be wondering how this recent market turbulence will impact farmland values. Farmland real estate is still holding value and there is strong confidence that it will continue to do so. Interest rates will have to get well above inflation rates and hold for a very long time before farmland values would be affected negatively.  Fortunately, farmland as an asset class is somewhat insulated from the turbulent U.S. economy. Recent data from the USDA shows U.S. farmland values actually increased 12.4% between June 2021 and June 2022, but the future of such values still remains uncertain. [Learn more about how the economic shocks of 2022 are affecting farmland values in our recent FBN Research report. Unlock the free report today .] Looking forward While the ‘80s brought high inflation rates to the country due to energy and food price shocks that started in the ‘70s, the outlook for farmland values is not as dire as it was back then.  With interest rates well below current inflation rates and farmland valuations trending around fair value based on projected cash flows, there is still strong confidence in farmland values nationwide. Near-term global grain shortfalls from weather and war should further support farmland values even as the underlying investment calculus changes based on shifting interest rates. And with the Federal Reserve now trying to get ahead of the curve, they risk creating a situation where rates are higher for longer than expected, causing longer term economic impacts. Finding the right balance is a precarious position for the Fed at the moment.  Source: 1. USDA Ag Land Values August 2022. Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network” and “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc.  Financing offered by FBN Finance, LLC and its lending partners and is available only 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 of FBN Finance, LLC and its lending partners. Interest rates and fees will vary depending on your individual situation. Not all applicants will qualify.