Farmers who use regenerative agriculture practices can often achieve higher productivity. As part of our mission to put Farmers First®, FBN wants to reward producers who practice sustainable land management.
With a Regenerative Agriculture Finance (RAF) Land Loan from FBN Finance, eligible farmers can receive interest rate reductions of .25% to .50% or savings up to $5,600 in interest payments per year — that’s a potential savings of $39,000 over the lifetime of the loan*.
The innovative RAF program is exclusively offered at FBN Finance and is designed to support farmland purchases or refinancing while rewarding farmers for continuing or adopting sustainable soil and water health practices.
ELIGIBILITY OVERVIEW
Regenerative Agriculture Finance Land Loan Requirements
To qualify for the RAF program, farmers must meet the criteria outlined below on all fields subject to the loan on an annual basis.
FARMER QUALIFICATION DETAILS
Who Can Apply?
Farmers growing wheat, corn, or soybeans or other crops specifically approved by FBN Finance.
Operations located in Arkansas, Illinois, Indiana, Iowa, Kentucky, Louisiana, Minnesota, Mississippi, Missouri, Tennessee, and Wisconsin.
Farmers with a minimum credit score of 680.
OPERATION QUALIFICATION DETAILS
What Is Required?
1. Commitment to implementing two or more of the following soil and water health practices:
No-till or reduced till.
Maintaining live roots throughout the year by either planting a cover crop or winter cash crop.
Regionally appropriate soil conservation practices as outlined in NRCS standards and approved by FBN Finance as contributing to improved soil health and/or water quality.
2. Adherence to nutrient management benchmarks:
Farmers must ensure responsible fertilizer use by meeting the nitrogen use efficiency and phosphorus management criteria developed by the Environmental Defense Fund (EDF).
3. Verification:
Gradable®, our sustainability partner, will guide you through data collection and verify RAF program results.
LEARN MORE
Frequently Asked Questions
For more program details, review the FAQs outlined below.
What is the discount?
Farmers who qualify for Regenerative Agriculture Finance (RAF) Land Loans can receive interest rate reductions of 25-50 basis points or savings up to $5,600 in interest payments per year — that’s a potential savings of $39,000 over the lifetime of the loan*.
*Potential Dollar savings are calculated based on a $1.5 million loan. This calculation assumes a standard 30-year fixed interest rate of 7.49% and a loan term of 7 years. Actual savings will vary based on loan size and terms.
How is FBN Finance offering this discount?
FBN secured low interest capital from the Walton Family Foundation, which serves as the second lien on each loan. By blending this low interest capital with market rate capital, each loan has a lower interest rate. A farmer must meet the environmental criteria of the loan annually to be eligible for the discounted rate each year.
Will I be removed from the program if I do not meet the environmental criteria in a given year?
Program eligibility is assessed on an annual basis. If you do not meet the criteria in a particular year you will not be removed from the program, but you will need to pay the full interest rate without the 25-50 basis point discount. You can reassess your eligibility the following year.
Is there a minimum or maximum loan size?
Minimum Loan Size: $125,000
Maximum Loan Size: $1,500,000
How is the loan structured?
Senior Loans: 1st lien mortgage on U.S. farmland
RAF Loan from the Walton Family Foundation: 2nd lien mortgage on U.S. farmland behind Senior Loan lender + personal guarantee
What is the loan term and amortization schedule?
Loan Term: 7 years (unless Senior Loan term is shorter, in which case same as Senior Loan term); principal repaid at maturity.
Interest: Payable annually, if applicable.
Access Free Educational Resources
FBN® Finance is your partner in building a stronger financial future. To help you through every step of the financing journey, we've developed a series of free downloadable guides to help you stay on top of your farm’s finances and scale the future of your farm.
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