The Best Time to Apply for a Farm Loan

The new year bells have chimed, father time has closed the door to yet another year, and most farm fields lay dormant for the winter months. Just as one harvest has finished up, the planning for another has started.  During this time farm operators are preparing for the new year’s financial needs and the question becomes when is the best time to apply for a new farm loan or farm operating line of credit?

When is the best time to apply for a farm loan?

The answer is simple.  The best time to apply for a farm loan is before you file your tax return!  The primary reason is most CPA's and tax planners are strategizing, meaning they seek opportunities for their clients such as carrying over income into the forthcoming year, holding back expenses in the current year, and numerous other strategies to reduce your taxable income thereby reducing your tax liability.  Now, on the other hand, your banker is looking for the exact opposite as cash flow is a key component in qualifying for a new loan.  By reporting greater income, you position yourself to access greater amounts of credit with lower interest rates.  So in turn some tax strategies used to reduce your income can decrease your chances to secure financing for your operation or even lower your interest expenses.

Your team at Farm Plus Financial understand this balance and will take the time to complete an in depth analysis of your operation’s finances and often can provide assistance with tax planning measures to benefit your financial standing. Farm Plus Financial will provide you a no cost analysis of income and expense reports and financial statements to help you better position your operation for stability and future growth. In addition to valuable insight to your cash flow from a debt obligation perspective, the analysis we provide will also help you identify the right loan for your operation.  Obtaining the right amount of capital with the right payment obligations built to suit your needs will give your operation in advantage by letting go of unnecessary debt, and expenses. Securing the right loan amount with payments the operation can afford will result in long term success and help reduce risks in your farm business.

Michael Fassel - Farm Plus Financial Farm Loans Relationship ManagerThe best time to apply for a farm loan is now so don't wait.  Contact Farm Plus Financial for an in depth financial analysis of your farm operation or contact me directly at 1-866-929-5585 or by email at New customers can secure long term farm operating loans starting at 2.72% and term farm real estate loans starting at 2.96%.

3 Responses

  1. David Mackley
    Mike, I see that you finance in PA. How about Massachusetts? I am growing Shiitake mushrooms and will go commercial next year on a 20 acre parcel. I have the financing for the 12 mil shade facilities, now I need financing for farm startup, short equipment, and oak logs, and spawn ($2.5 mil). All the best, Mac
  2. Do you finance in NY We have a vineyard and winery. Tamre Varallo
    • Thank you for contacting us. Farm Plus Financial does finance vineyards and wineries in New York and throughout the United States. We would love to discuss your financing needs at your earliest convenience. You can contact me directly at 970.372.1020 or by email at I look forward to hearing from you.