Did you know that Missouri ranks second in the number of farms in the US? Because of the “Show-Me” state’s 29 million acres of fertile land, agriculture naturally plays an important role in the state's economy. In this article, we’ll discuss the various agricultural loans available in Missouri, and how farmers and the state’s overall agricultural sector can benefit from accessing them.
Riverways Federal Credit Union aims to help farmers make better, more informed decisions about their finances. We strongly believe that with the proper financial education and assistance, Missouri's agricultural community can continue to thrive, innovate and contribute to the state’s economy.
What are agricultural loans?
Agricultural loans provide financial assistance to farmers and agribusinesses, and help them maintain and grow their operations at a better pace. These specific loans can be used for different purposes, to purchase equipment, buy land, improve existing facilities, and manage cash flow. In Missouri, several organizations and institutions offer agricultural loans, including government agencies, private lenders, and credit unions like ours, Riverways Federal Credit Union.
Beyond merely providing financial assistance, agricultural loans offer numerous benefits to farmers and agribusinesses in Missouri. These loans contribute to the growth and development of the state's agricultural sector, create jobs and promote economic stability. By supporting the expansion and improvement of farms and agribusinesses, agricultural loans also encourage innovation in farming techniques and better, more sustainable practices.
They help foster a more resilient agricultural industry that can better adapt to changing market conditions, weather-related challenges, and other external factors. Undoubtedly, agricultural loans play a crucial role in ensuring the long-term success and prosperity of Missouri's agricultural community.
Types of agricultural loans in Missouri
Both Missouri farmers with small businesses and bigger agribusinesses have access to a diverse range of agricultural loan programs designed to cater to their specific needs and objectives. These loans, offered by various organizations and institutions, are tailored to support the different aspects of agricultural operations.
Among the agricultural loans available in Missouri, we’ve listed USDA Farm Service Agency (FSA) loans, Missouri Agricultural and Small Business Development Authority (MASBDA) loans, and Riverways Federal Credit Union agricultural loans. This comprehensive overview will help you better understand the financing options at your disposal, and make better, more informed decisions regarding your agricultural financing needs.
USDA Farm Service Agency (FSA) Loans
Direct Farm Ownership Loans
Direct Farm Operating Loans
Guaranteed Farm Loans
Emergency Farm Loans
Conservation Loans
Microloans
Missouri Agricultural and Small Business Development Authority (MASBDA) Loans
Linked Deposit Loans
Beginning Farmer Loans
Value-Added Agricultural Product Market Development Grants
Riverways Federal Credit Union Agricultural Loans
Farm Equipment Loans
Livestock Loans
Real Estate Loans
Operating Loans
Eligibility criteria for agricultural loans
While the specific eligibility criteria for agricultural loans in Missouri may differ based on the lending institution and loan type, there are common requirements that generally apply across the board. Prospective borrowers should be U.S. citizens or permanent residents, demonstrate a genuine need for financial assistance, and possess a satisfactory credit history.
Another point worth noting is that applicants must be actively involved in farming or ranching operations, and should not have any outstanding federal or state debts that would render them ineligible for the loan.
How to apply for an agricultural loan
Applying for an agricultural loan can seem like a daunting task, but breaking it down into manageable steps can make the process more straightforward and less intimidating.
To successfully apply for an agricultural loan, begin by researching and selecting the most suitable loan program for your needs. Next, gather essential documentation, including financial statements and tax returns, and build a comprehensive business plan.
Review your credit history, rectify any errors or discrepancies, and reach out to the lender or lending institution to learn more about the application process. Once you have completed the loan application, submit it along with the required documentation. Finally, patiently await the lender's decision, and be ready to provide any additional information that they may request.
Tips for success in securing agricultural loans
Developing a strong foundation for your loan application is essential to increase your chances of approval. Begin by creating a comprehensive and well-researched business plan, showcasing your understanding of the agricultural industry and your dedication to success. It’s important to keep a good credit history by paying bills on time and managing any debts responsibly. Seek advice from experienced farmers, agricultural consultants, and loan officers; their insights could be invaluable in helping you secure your funding.
When considering your financing options, it's advised to explore multiple loan programs and compare their terms and conditions before deciding on the best fit for your needs. Applying for several loans simultaneously can improve your chances of obtaining the financial assistance you require. Staying organized and keeping your financial records up-to-date will streamline the loan application process and make it easier for lenders to assess your eligibility.
Remember to be prepared to offer collateral, such as land, equipment, or livestock, as this can help secure the loan. Demonstrating a commitment to sustainable farming practices may also enhance your chances of receiving a loan, as it indicates a responsible and forward-thinking approach to agriculture. Exercise patience and persistence throughout the application process, as securing agricultural financing can sometimes take time, and staying dedicated to your goals is vital for success.
Grow with Riverways Federal Credit Union
At Riverways Federal Credit Union, we understand the unique challenges and opportunities that come with running a successful farming operation. Our goal is to support your growth and help you cultivate success through our diverse range of agricultural loans, tailored to meet your specific needs at any stage of your agricultural journey.
Whether you're expanding your current operation, seizing a new opportunity, or managing day-to-day expenses, our loans for farmland (with or without a home), equipment loans, and livestock loans can provide the financial assistance you need to thrive.
When partnering with Riverways Federal Credit Union, you can feel confident that you're not just obtaining financial support, but also building a long-lasting relationship with a credit union that cares about your success.
Let’s grow together and strengthen the future of Missouri's agricultural industry. Visit one of our branches to find out more.