Farming has become much more competitive than it was even 10 years ago. Keeping up with the ever-changing industry can be difficult even for well-established farmers, let alone new farmers and those looking to start a farming operation in the future. If you are a new or future farmer and are looking for help getting started - we encourage you to check out this advice from one of our experienced agriculture lenders.
4 Tips for New & Future Farmers
Chris Frischmeyer, an Ag Lender with over 34 years of experience, outlined a few tips and advice that can help new and future farmers get started with their own farming operation.
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Apprentice
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Work for an established farmer so you understand the commitment it takes and the risks and return involved in making a successful farm operation.
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Build Reserves
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As you start your farm operation, ask yourself if you want to buy a piece of equipment or land. A lender will ask for a down payment and it is important to build reserves before making that purchase.
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Educate
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Take as many agronomy, finance, marketing and technology courses as you possibly can. All of that knowledge will be important to have a successful operation.
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Review Finances
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In order to help farmers achieve their financial goals, LSB’s employee-owners developed LSB+, a program that offers the opportunity to have your financial services reviewed by an in-house expert.
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Financing Your Farming Operation
Financing your farming operation starts with a trusted banking partner that has the knowledge and experience to help you succeed. Establishing a relationship and getting to know your bank and lender is a good first step. Then, research loan options and ask your lender to review their available loan products with you. Choose the products that will best suit your farming operation needs.
Lincoln Savings Bank has a variety of loan products that can help our farmers be successful. The most popular is our operating line of credit which is a line of credit where clients can borrow and payback according to their cashflow or their cashflow needs. The farmer generally will pay principal first and then they have to pay the interest once a year.
Another advantage of a trusted banking partner like Lincoln Savings Bank is the experience of our agricultural lenders. We have several lenders with an average of 25 years’ worth of experience which is a tremendous amount of experience to help our farm clients with the success of their operations. Our knowledgeable lenders understand the unique needs and circumstances of Iowa farmers.
Get Started Today!
Lincoln Savings Bank has served the banking needs of rural Iowans for over a century and agricultural loans and farm financing are a cornerstone of that history. In addition to that, the core purpose at Lincoln Savings Bank is to be an engaged, lifelong partner, helping our clients achieve their financial goals, and that vision is shared not only by the lenders of Lincoln Savings Bank, but every employee that works here. The bottom line is we want to help your farm succeed. To learn more about the different agricultural loan options, contact an LSB lender today to get the financing that’s right for you and your farm.
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