Operating Lines for Farmers from FBN Finance
FBN Finance offers farm operating lines for farmers at amounts ranging between $100,000 to $5,000,000.
With more than 1,700 farmers served and over a billion dollars in funds committed to date, we understand that choosing a financing partner is an extremely important decision for your ag operation.
Backed by competitive rates and an array of helpful ag financing solutions, our team is ready to walk you through the application process to help you secure a financing solution that fits your unique operation.
Financing on Your Time
Working with FBN Finance
There are a variety of reasons to work with FBN Finance on your operating line, including:
Great Rates
Convenient and Secure Application
Exceptional Service
Deep Industry Experience
Significant Network Benefits
Farm Land Loans
Equipment Loans
Insurance
Crop Marketing
What Is a Farm Operating Line?
Farming is a capital intensive business with a seasonal income timeline. To pay for various agricultural purchases throughout the season, farmers often rely on financing solutions like farm operating lines.
The ability to inject an influx of capital to scale a farmer’s operation and quickly pay off debts from a farm operating line can often improve an ag operation’s balance sheet.
An operating line of credit is designed to help farmers fund agriculture-related operating expenses within their ag operations.
Operating Line vs. Operating Loan: What’s the Difference?
While FBN Finance offers operating lines, you may sometimes hear the terms "operating line" and "operating loan" used interchangeably in your farm financing research. However, there technically are differences between the two financing options.
Finance products can sometimes vary from lender to lender, but these are the most common differences:
Operating Line
Generally speaking, the loan is paid as a line of credit with a monetary cap (approved financing amount) and without a fixed payment schedule. An operating line is often a revolving line of credit, meaning that the credit continues to renew as long as the recipient is paying down the debt.
Operating Loan
Typically, the loan is provided in a lump sum that is non-revolving. This means that the recipient will receive the entire approved loan amount upfront and will have a payment schedule to match the needs of their operation.
Operating Line Uses
An operating line of credit can be used on any agricultural related operating expenses including:
Buying Inputs
Insecticide, herbicide, fungicide, seed and other ag inputs can carry substantial price tags. Operating lines enable farmers to purchase the inputs they need from FBN or other ag suppliers when they need them, without having to worry about immediately covering the sizable cost.
Paying Rent
Rent is often a major expense for farmers, especially during the growing season. An operating line can be used to cover that anticipated, recurring expense.
Covering Labor Costs
To ensure all farm operations run smoothly, farmers can use an operating line to access working capital and cover time-sensitive labor costs.
Purchasing Equipment
Operating lines can also be used to pay for equipment purchases or fund necessary equipment repairs.
Ready to Apply for a Farm Operating Line from FBN Finance?
If an operating line sounds like the right fit for your ag operation, complete the form below or call 866-551-3950 to speak directly with a member of the FBN Finance team today.
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FAQs
Who is eligible for a farm operating line?
Most approved borrowers have a credit score of 680 or higher, though there are some exceptions to this standard. Repayment history is also a consideration, along with the size of the line of credit relative to a farmer’s income/operation scale and the general financial health of the farmer’s operation.
Because farm operating lines require crop production for the collateral, multi-function crop and livestock operations are often a good fit, but single livestock operations are not a good fit for this type of financing.
Do you offer revolving lines of credit?
Yes — all of our operating lines are revolving.
Do you offer fixed rate operating lines?
We offer fixed rates for amounts of $1 million or less, and variable rates for amounts greater than $1 million.
How do I obtain an advance?
Advances are made through an ACH or wire request in which funds will be electronically transferred.
How long will it take to receive my funds upon request?
Funds can be transferred into your account in as little as two business days after they’ve been requested.
Will FBN’s name be on my checks?
FBN’s name is not on grain or crop insurance checks.
What is used for collateral?
Depending on what the farmer is approved for, the operating lines are secured by crops, crop proceeds, and crop insurance, or a blanket lien on all farm assets.
Is there a minimum and maximum loan amount?
Our loan amounts range from $100,000 to $5,000,000.
When does the line of credit mature?
The maturity date is March 1, 2024. If you typically store your grain to market later in the year, we can work with you next winter to extend the line past this date.