Farm Line of Credit
FBN® Finance offers farmers farm lines of credit up to $15 million with great terms, no application fees, and a process that's wrapped up in days.
Line of Credit for Farmers
A farm line of credit is a flexible financial tool secured by real estate and designed to meet farmers' unique seasonal cash flow.
Once approved for a credit limit, draw what you need for inputs, labor, rent, or farmland purchases; funds instantly become available to re-borrow as you repay the principal. Because you only pay interest on the money used, you can take advantage of timely discount opportunities and manage unexpected costs without ever having to re-apply.
Stop locking up capital with traditional term loans and get expedited access to up to $15 million in capital from FBN Finance.
How to Use a Farm Line of Credit
Once approved for a credit limit, you can borrow, repay, and re-borrow funds as needed, only paying interest on the amount used. There are two ways to use an ag line of credit from FBN Finance:
Operating Expenses
Cover crucial farm operating expenses like seed & chem purchases, labor costs, and other essentials with flexible terms. Your principal balance can be deferred up to five years, offering peace of mind and cash flow flexibility so you can focus on production and strategic farm priorities.
Land Acquisition Costs
Fund a farmland purchase by proactively securing flexible financing. Feel confident knowing you'll be able to transact as soon as your ideal property comes onto the market, empowering you to act fast and easily position yourself as a highly qualified buyer.
What's the Difference: Operating Loan vs. Farm Line of Credit?
The terms operating loan and revolving line of credit (RLOC) are often used interchangeably in agricultural finance, but they actually refer to distinct, short-term financing structures. An operating loan often refers to a single-disbursement, non-revolving structure, while the term line of credit is generally used as a broad category encompassing the various short-term credit options for running the farm.
While finance products can vary between lenders, below are the primary differences between operating loans and RLOC.
Operating Loan
Non-Revolving: A single lump-sum disbursement. Once paid down, the funds are no longer available.
Funds: You receive the full loan amount upfront.
Interest: Charged on the full lump-sum amount from the day it's disbursed.
Repayment: Fixed repayment schedule, usually paid back in a lump sum after harvest/sale of the commodity.
Flexibility: Fixed amount and fixed repayment, offering less adaptability during the season
Farm Line of Credit
Revolving: Funds replenish as they are repaid, like a credit card.
Funds: Draw what you need when needed, up to a limit.
Interest: Charged only on the outstanding balance (the amount you've actually drawn).
Repayment: Flexible draws and repayments. Often requires balance be paid down to a minimum annually.
Flexibility: Ideal for managing fluctuating input prices, unexpected repairs, or variable timing of income.
Why Partner with FBN Finance®?
Great Rates
Be confident you're getting a great rate. Compared to other ag mortgage lenders, we're typically able to save our customers thousands of dollars thanks to our competitive rates, low overhead, and national member network.
Quick Decisions
Save time with our secure and easy digital application, which speeds up the funding process to help you potentially get your farm funding more quickly. You could be approved within 48 business hours.
Industry Experience
Our FBN Finance loan advisors, analysts, and closers — many of whom are producers themselves — have an average of 15 years of ag finance experience and are ready to develop customized solutions to your financing needs.
Financing Designed for Farmers First®
FBN Finance offers a variety of financing solutions to support you as you maintain or grow your ag operation. In addition to lines of credit, FBN Finance also offers:
Farmland Loans
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 land loan you need to build a stronger financial future.
Equipment Loans
Farm equipment financing that works for you. Finding the right equipment is crucial to moving your operation forward. Our equipment financing solutions help focus on productivity in the field and power up your farm with new, used and leased units.
Input Financing
Input financing offers you credit for essential ag inputs. By bridging seasonal cash flow gaps, input financing from FBN Finance allows you to secure critical inputs and maximize yields, with a payment schedule that aligns with your harvest.
Crop Marketing
Connect to your grain buyers and stay on top of your crop marketing with personalized, data-driven market advisory and risk management services from our dedicated and experienced team looking to help you maximize the value of your crops.
Operating Lines
An operating line is essentially a flexible line of credit designed to cover the continuous, short-term expenses of running an ag operation. Finance ag inputs, pay rent, and more with an operating line, available through FBN® Finance's trusted financing partner.
Speak with a Loan Advisor About Farm Lines of Credit
Speak with a Loan Advisor About Farm Lines of Credit
Complete the form or call 866-551-3950 to speak directly with a member of the FBN Finance team today.