Ag Loans
& Leases

Financing for every aspect of
farm and ranch operations.

AG FINANCING

From operating lines of credit, to farm and ranch land, to livestock, equipment and facilities, we finance every aspect of farm and ranch operations.
worksmart
WorkSmart® Line of Credit

Finance your farm or ranch operation with an operating line of credit that includes money-saving benefits and time-saving features you’ll find nowhere else.

real-estate-loans
Real Estate Loans

Finance farmland, pastures or acreages with attractive rates, more flexibility and cash-back dividends.

intermediat-term-loans
Intermediate-Term Loans

Flexible, convenient, money-saving features for financing livestock, ag facilities, eligible farm equipment and vehicles, farm improvements and more.

agdirect-equipment
AgDirect® Equipment Financing

Along with options to buy, lease or refinance farm equipment, you’ll find attractive rates and the most ag-friendly terms in the business.

facility-loans
Facility Loans

Flexible, convenient, money-saving features for financing cattle and hog barns, farm storage buildings, grain bins and more.

leases
Leases

Save costs, improve cash flow and gain tax advantages with our leasing options for farm storage buildings, grain bins, cattle and hog barns, farm equipment and vehicles, and more.

LOAN PAYMENT CALCULATOR


This is an estimate of payments for various loan types including farm loans, land loans, ranch loans, livestock loans and ag loans. The actual loan payment amounts may vary depending on the interest rate, closing date and other factors.

"They’re always there to back us. It’s nothing for them to call me with a new idea of what I can do better to increase my bottom dollar."

Jeremy & Angie

Grain & Livestock Producers, Iowa

Jeremy & Angie

AG FINANCING CONTENT

Why You Need a Cashflow Budget

A cattle feeder was certain of his cost of production, yet he wasn’t profitable. He and his financial officer worked through a cashflow budget using historical and projected numbers. The cattleman learned he was underestimating his cost of production by $73,000 and consistently marketed below his true breakeven by 30 cents per pound.

“Until you have a cashflow budget, you can’t accurately calculate your production costs and breakeven,” said Tyler Peters, one of our business development officers. “It is estimated that only 10% to 15% of producers have a cashflow budget. They have the competitive advantage.”

“It is estimated that only 10% to 15% of producers have a cashflow budget. They have the competitive advantage.”
– Tyler Peters, business development officer

What a Cashflow Budget Does for an Operation

  • Projects profits and losses
  • Provides insights into areas impacting profitability
  • Helps reduce some of the emotion associated with market fluctuations What a cashflow budget can’t do for an operation
  • Replace an annual balance sheet
  • Eliminate the need for cost of production or break-even calculations
  • Guarantee profitability
  • Make financial decisions easy

How to Get Started

Gather both historical and forward-looking numbers to get the truest picture of your operation. Below are examples of documents in each category.

  • Historical income and expenses: tax returns, income statements and bookkeeping records. It’s also important to review your family living expenses.
  • Forward-looking income: projected revenue from farm commodity and livestock sales, other farm income, all nonfarm income.
  • Forward-looking expenses: projected or estimated inputs, overhead expenses, rent and payments.

Complete a Plan

Producers can pick from a variety of cashflow templates. Talk to your FCSAmerica financial officer if you want to use our template. Whatever the form, keep it simple to start.

  • Map out your acres and what you plan to do on those acres. If you have a diversified operation or livestock, project income and expenses for each enterprise individually.
  • Write down all anticipated production costs.
  • Project total production. Use APH on existing production, approximations on new acres and reasonable price estimations. When in doubt, be conservative with your numbers. Points to remember:
  • Be realistic on variable expenses
  • Keep crop years separate
  • Know all your debt payments
  • Track the small stuff. It adds up, as one young couple learned when they began digging into the cost of frequent children’s museum trips, drive-up food orders, $5 credit card swipes, etc. The $24,000 they estimated for annual family living expenses grew to $48,000 when they accounted for all the “small” stuff, said Peters, who worked with the couple.

Annual vs. Monthly Cashflow Budget

An annualized projection compares income and the value of commodities produced in a given year against the cost of producing that income. Your resulting cost of production enables you to create a marketing plan and determine the viability of your operation in the current environment.

A monthly cashflow plan allows you to understand and better manage the inflow and outflow of cash (or operating loan) to ensure your operation runs smoothly. It also allows for adjustments. An unexpected transmission repair bill of $35,000, for example, might require you to trim planned expenses elsewhere to keep the operation on track for the year.

 

Example of Good Cashflow but Low Profitability:

  • Living off inventories or depreciation, and no reinvesting in the operation.
  • Borrowing money
  • Not paying bills

Example of Bad Cashflow but Good Profitability:

  • Expanding business with increasing assets but low cash sales
  • High withdrawals for family living
  • Paying down debt rapidly

 

YOU MIGHT BE
INTERESTED IN

Mar 12, 2020 | The Business of Agriculture

Using the Power of Cash Flow Projections to Manage Your Business

That kind of knowledge is power, yet less than a quarter of producers prepare a cash flow statement.

Dec 23, 2019 | The Business of Agriculture

Lessons Learned in 2019 You Can Apply to 2020

Economists Brent Gloy and David Widmar talked with Chad Gent, our senior vice president of credit, about lessons learned from the past year.

Jun 27, 2019 | The Business of Agriculture

Make Adjustments Now to Optimize Profitability

Economists Brent Gloy and David Widmar outline the steps producers should take to identify the right adjustments for 2019.

Ready to Talk?

Contact us if you have questions or need more information. Fill out the form, or connect with your local office using the Office Locator.

FCSAmerica serves farmers, ranchers, agribusinesses and rural residents in Iowa, Nebraska, South Dakota and Wyoming. For inquiries outside this geography, use the Farm Credit Association Locator  to contact your local office.