Farm Operating Lines
FBN® Finance offers farmers operating lines of up to $1 million with great terms, zero application fees and a process that's wrapped up in minutes.
Operating Lines for Farmers from FBN Finance
FBN Finance offers farm operating lines for farmers at amounts ranging between $150,000 to $1,000,000.
With more than 2,900 farmers served and $2.3+ billion 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.
Working with FBN Finance
There are a variety of reasons to work with FBN Finance on your operating line, including:
Great Rates
FBN Finance offers fixed rates for operating line amounts of $1 million or less, and variable rates for amounts greater than $1 million. Thanks to our low overhead and nationwide farmer network, FBN Finance is often able to save customers thousands of dollars*.
Convenient Application
With a streamlined, digital application and no application fees, there's no need for farmers to waste valuable time driving to the bank and having multiple conversations in order to start applying for the funds they need to grow their operation. Plus, lines under $1 million receive a decision and rate instantly.
Exceptional Service
At FBN Finance, our team comprises experienced ag and finance professionals. We understand that every farmer is different, so we’re prepared to work with you directly to help provide custom solutions to your ag financing needs.
Deep Industry Experience
Our team members, who each average 15+ years of ag finance experience, are standing by to talk you through the stages of the financing process in a straightforward and supportive way so you can get the financing you need to scale your business.
Significant Network Benefits
Supported by a Farmers First® approach to everything we do, FBN Finance offers a variety of financing solutions to support you as you maintain or grow your ag operation. In addition to operating lines, FBN Finance also offers:
Farm Land 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.
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.
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.
Maintaining Equipment
Operating lines can also be used to pay for necessary equipment repairs.
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FBN® Educational Resource: Balance Sheet Template
Our Excel balance sheet template puts you in control of your farm's finances, offering you deep insight into your operation's financial position.
Regenerative Practices Rebate Program
Regenerative agriculture not only plays a key role in optimizing soil health and maximizing crop yield, but it can also reduce farm costs and ensure long-term farmland value for future generations.
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 $150,000 to $1,000,000.
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.