National Agriculture Day is on March 24th this year and is a day where we take the time to recognize and appreciate farmers across the United States. Agriculture plays a crucial role in the economic and food security in our country. Without farms, our struggles would be great and our world very different.
With all that farmers do for our economy today, it is only right that we as banks help them financially. McHenry Savings Bank is now offering Agribusiness and Farm Loans. The long term rates are remarkably low right now, and you could lock them in for up to 30 years if you qualify.
If you have tried to finance between 10 and 100 acres of agricultural-related land, I’m sure some folks have run into problems. Working with McHenry Savings Bank, which has access to FarmerMac’s programs, will add flexibility which can help you get past these problems. You will not have to continually renew or refinance your loan every 5 years. Instead through Farmer Mac, we can offer several loan terms, some up to 30-years.
Tim Kempel, SVP Director of Agribusiness Lending at McHenry State Bank says, “McHenry Savings Bank is one of a handful of banks to make the commitment to work with Farmer Mac to be able to offer you a full range of alternatives in farm financing. We understand each client has a unique set of circumstances and we can bring our experience to find the best available approach that fits your needs.”
With the products that Farmer Mac’s programs offer, all you need to do is be able to prove is that your farm could generate $5,000 of annual income. This means that it just needs to have the potential and does not have to actually earn $5,000.
However, there are a few limitations to financing these properties and McHenry Bank can’t provide financing for every deal. Here is some general insight on financing these properties from Tim Kempel.
- If you have strong personal credit and equity in the property, and the loan balance will be less than $750,000, we can work with a short application and likely receive a decision within 24 hours.
- Loan balances up to $1,500,000 are available with a slightly more detailed application and 2 years’ worth of tax returns, and the limited underwriting process will take approximately 10 days once all required information is received.
- Depending on the exact loan structure that works best for you, required income levels (from all sources) can range from 1x to 1.5x debt costs and the amount of equity required will vary.
- Loan rates can be locked for 3,5,7,10,15,20,30 years and balances amortized 10,20,25, and 30 years
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Photo by: Federico Respini
