Ag Equity

A Revolving Line of Credit for Farm & Ranch Operations

Ag Equity Loans are designed to give ag producers flexible, long-term access to capital by leveraging the equity in their agricultural real estate. With revolving draw periods and interest-only payments during the early years, these loans offer financial freedom to reinvest in your operation — without refinancing or selling property.

Whether you’re improving infrastructure, consolidating debt, or funding operational growth, we’ll help you structure the right Ag Equity loan to meet your goals.

Loan Structure, Terms & Qualifications

  • Semi-annual interest due on January 1st and July 1st during the draw periods
  • Structured on 5,10-,15-,20-, or 25-year amortizations thereafter
  • Variable rate based on 30day Libor
  • Convertible to available fixed or adjustable-rate products during or after the expiration of the draw period or draw period may be extended. (If converted during the draw period, revolving feature is eliminated)
  • Unlimited number of draws and repayments during the draw period
  • Customer certifies loan is a business loan made for business purposes
  • Minimum loan amount $150,000
  • If property includes improvements, the contributory value of such will be deducted from the appraised value
  • Irrigation equipment may be included in property value if properly secured

Option 1: 5-Year Draw Period

  • Loan term options are 15, 20, 25, or 30 years
  • Draw period of 5 years
  • At end of draw period, the outstanding principal is amortized over the remaining term 10, 15, 20 or 25 years
  • Interest only payments made during draw period

 

Option 2: 10-Year Draw Period

  • Loan term options are 15, 20, 25, or 30 years
  • Draw period of 10 years
  • At end of draw period, the outstanding principal is amortized over the remaining term 10, 15 or 20 years
  • Interest only payments made during draw period

  • Debt-to-Asset Ratio: Less than 50%

  • Total Debt Coverage: Greater than 1.35:1

  • Current Ratio: Greater than 1.00:1

  • Minimum Credit Score: 680

  • Loan-to-Value Limits:

    • Option 1: Max 50% LTV

    • Option 2: Max 45% LTV

  • Property Debt Coverage:

    • Option 1: Minimum 0.80:1

    • Option 2: Minimum 1.00:1

Let’s Talk About Leveraging Your Land’s Equity

Whether you’re planning upgrades, expansion, or simply want more financial flexibility — we can help you unlock the power of your farm’s equity.

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