See national chem pricing trends in the FBN Research report
Choosing the right lender is as critical for a refinance as it was for your original loan. It’s a good idea to find a lender who has:
A financing product that meets your needs. Not all lenders offer the same types of agricultural loans or have the same appetite for risk. Look for lenders with a strong portfolio in farm financing.
Experience working in the real estate financing space. Agricultural real estate financing has unique complexities. A lender with specific experience in this area will understand the nuances of farm valuations, land use, and rural property laws.
A transparent fee structure and refinance options. Compare closing costs, application fees, and any other charges across different lenders. Also, inquire about their future refinancing options or rate modification policies, as this could impact future financial flexibility.
A reputation for helpful customer service. Beyond rates and fees, consider the lender's reputation for customer service and their willingness to build a long-term relationship. A lender who understands your operation can be a valuable partner.
Before approaching a lender, it's wise to review your financial situation and address any potential issues that could hinder your application.
Credit Score: Check your personal and farm business credit scores. If they are low, take steps to improve them, such as paying down existing debts or correcting any errors on your credit report. A higher credit score often translates to better interest rates.
Debt-to-Income Ratio: Lenders assess your ability to repay new debt. If your existing debt burden is very high relative to your income, you might need to reduce it before applying.
Cash Flow Consistency: While farming income can be seasonal, lenders prefer to see consistent and strong cash flow. Be prepared to explain any fluctuations and how you manage them.
Undocumented Income or Expenses: Ensure all your farm's financial activities are properly documented and reflected in your tax returns and financial statements.
Preparation is key to a smooth refinancing process. Having your documents in order will save you time and demonstrate your financial readiness to lenders. Be prepared to show your lender:
3 years of tax returns: Lenders will want to see your farm's profitability and financial history. Have your federal and state tax returns readily available.
A current balance sheet: This provides a snapshot of your farm's assets, liabilities, and equity at a specific point in time. It's crucial for assessing your financial health.
Your parcel information: Details about your land, including legal descriptions, acreage, and any related documents.
A list of loans/accounts to be included in the loan: Provide a clear, detailed list of all debts you intend to consolidate, including account numbers, current balances, interest rates, and creditor contact information.
Information about your existing loan, including the balance, rate, prepayment fees, etc.: Have all the details of the loan you wish to refinance at hand. This includes the current principal balance, interest rate, original loan amount, loan start date, and any prepayment penalties or clauses.
At FBN Finance, we understand the unique financial landscape of agriculture because we're rooted in it, just like you. We offer tailored lending solutions designed to meet the diverse needs of modern farmers. With our competitive rates, quick digital approvals, and a team of experienced loan advisors — many of whom are farmers themselves — we provide essential capital for your operation.
Whether you need land loans to purchase farmland or refinance, operating lines, or equipment financing for new or used machinery, our innovative approach ensures you have access to the funds you need. Our Farmers First® philosophy means we're dedicated to helping you invest confidently in the future of your farm.
If you're ready to find a trustworthy lender to partner with on your refinancing strategy, get in touch with our team.
Click here to learn more about refinancing your land loan with FBN Finance.
Call 866-551-3950 to speak directly with a loan advisor.
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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. NMLS ID 1631119.