Farm Operating Lines
Finance ag inputs, pay rent, cover labor costs, and more with an ag operating line, available through FBN® Finance's trusted financing partner.
Operating Lines for Farmers
We understand that choosing a financing partner is an extremely important decision for your ag operation.
Backed by competitive rates, ag expertise, and a skilled team, our trusted financing partner is ready to walk you through the application process to help you secure an operating line made for farmers and customized to fit your unique ag operation.
What Is a Farm Operating Line?
An operating line for farmers is essentially a flexible line of credit designed to cover the continuous, short-term expenses of running an ag operation.
By providing funds for daily needs like crop protection or livestock feed purchases, fuel, and labor, operating lines bridge the gap between seasonal expenses and income from harvests or sales.
Farmers only pay interest on the amount they've actually drawn, allowing them to manage cash flow efficiently throughout the year.
What's the Difference Between an Operating Line vs. Operating Loan?
You may sometimes hear the terms "operating line" and "operating loan" used interchangeably in your farm financing research. However, there technically are significant 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, this option 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, an operating 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 that matches the unique seasonal needs of their operation.
How to Use an Operating Line
An operating line 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
An operating line can also be used to pay for necessary equipment repairs.
FAQs
Frequently Asked Questions About Operating Lines from FBN Finance
Do you offer revolving lines of credit?
Yes — all of our operating lines are revolving.
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.
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 loan amount?
The minimum loan amount is $250,000.
When does the line of credit mature?
The maturity date is March 1, 2026.
Interested in Learning More About Operating Lines?
Interested in Learning More About Operating Lines?
Complete the form or call 866-551-3950 to speak directly with a loan advisor.