Find the Difference Between Farm and Agricultural Land Loans

1
Find the Difference Between Farm and Agricultural
Land Loans
2

• There is a difference between (Farm Loans) and
  (Agricultural Land Loans). Farm loans would
  include loans for purchase and refinance of
  agricultural producing property. These are
  usually paid over a period of 25 to 30 years.
  Farm loans could also include operating loans to
  purchase seed, fertilizer, etc. or anything
  needed to establish a growing crop. Farm loans
  would also include loans to purchase machinery
  needed in the farming operation. Farm loans could
  also be made to pay living expenses until crop is
  harvested.
• Agricultural Land Loans on the other hand are
  made exclusively for the purchase of real estate
  used to produce farm products. They can also be
  used to refinance long term loans. Agricultural
  Land Loans must be made on property that produces
  agricultural product. A 5-acre piece of property
  with no crops of any kind would not qualify. Most
  Agricultural Banks are more interested in the
  shorter-term farm loans than the long term
  30-year loans. However United Farm Mortgage is
  interested in the long-term loans used to
  purchase or refinance AGRICULTURAL property.
  Rates would be competitive with other commercial
  long-term loans.
• Contact us to learn more.