Financing options, like ag equipment loans, lines of credit, or real estate transactions, enable businesses to adapt to fast-changing industry requirements and become more efficient.
You can count on us as a trusted partner at Bank of the Rockies. We work with Montana farmers and ranchers to offer custom lending solutions. With our industry knowledge and commitment to agricultural businesses, we are the reliable team you need on your side.
Understanding Types of Agricultural Loans
1. Revolving or Straight Operating Lines of Credit
Most agricultural businesses have two main options: a revolving line of credit or a straight operating line of credit. Operating lines of credit can help you with ongoing equipment needs, including repairs, support components, or maintenance, and other operating needs. They allow you to borrow when and how you need to do so.
A flexible credit line like this can help you manage your current expected needs as well as unexpected costs that may arise in the near future.
2. Term Operating Loans for Purchasing or Refinancing Equipment
An ag equipment loan is a competitively priced financing tool that enables farmers and ranchers to tap into affordable lending to purchase and upgrade equipment. These funding options are flexible to meet your specific needs. When you need to upgrade or purchase equipment for your operation, the right loans will help you manage cash flow and spread out the significant expenses over time. A term loan works well when you need to make a single but substantial purchase, such as buying new equipment for your agribusiness or refinancing an existing equipment loan that’s too expensive.
It offers stability and predictability of either monthly payments or annual payments. payments month after month. You know the terms and can create a long-term plan. for reducing costs. If it’s time to upgrade to more modern or efficient machinery to enhance productivity, you’ll benefit from this loan.
3. FSA Guaranteed Loan Programs
The availability of FSA Guaranteed Loan Programs through Bank of the Rockies ensures you gain access to the most you need at the best possible rate.
This loan program offers additional security and flexible terms for equipment purchases, especially for farmers who may not qualify for conventional loans. With less risk come more opportunities to get the funds you need to remain competitive. Since the government backs these loans, they reduce the risk for both the borrower and the lender, making them affordable and accessible.
4. Real Estate Loans for Expansion
When you’re ready to scale your business, purchasing new land can be essential. Real estate loans, backed by the property’s value, offer a cost-effective solution. These loans can facilitate operations expansion and allow for investment in larger equipment.
Accessing additional land improves your facilities and supports your growth plans. Through our partnership with Farmer Mac, you can access some of the most affordable real estate loans available.
5. Youth Ag Loans: Preparing for the Future
The future of agriculture is bright, especially for the members of 4-H and FFA. Our unique youth Ag Loans are designed to enhance your operations.
These loans help foster the next generation of agricultural professionals. With early access to financing, you can help ensure bright minds are constantly working to advance the industry.
Invest in Your Agricultural Business’s Future Today
The right equipment, land, and financial support are critical to supporting every agricultural business. Bank of the Rockies’ deep connection to agriculture, along with our commitment to providing tailored financing solutions— including ag equipment loans—ensures you receive the best possible terms and conditions.
Learn more about the available financing for farm and ranch loans available at Bank of the Rockies.
