Full-Time Farms


Property Eligibility
  • Agricultural Real Estate securing loan must be at least 5 acres
  • Land must produce at least $5,000 annually
Credit Standards
  • Minimum Credit Score: 660
  • Pro Forma Debt to Asset Ration ≤ 50% market value
  • Pro Forma Debt Coverage ≥ 1.25:1
  • Pro Forma Current Ration ≥ 1.00:1
  • Annual farm cash receipts of ≥ $5,000
  • Property debt coverage ≥ 1.00:1
  • Any slow pays on Mortgage account must be fully explained
Documentation Required
  • Complete, signed application
  • Current balance sheet, signed
  • 3 years of historical tax returns
  • Projected income and expense
  • 3 years of historical balance sheets
  • 4 years of historical production
Maximum LTV 70% up to $3 million; over $3 million 60% LTV
Maximum LTV 60% if greater than 25% cash out
Maximum LTV 50% if greater than 25% cash out and loan exceeds $3 million
Maximum loan term 25 years
Maximum amortization 25 years
Monthly, annual, and semi-annual payments available
Open Prepayment options available


AgEquity


Program Highlights
  • Revolving line of credit secured by 1st mortgage on real estate
  • Draw period of 5 or 10 years
  • Variable Rate based upon 30 day Libor
  • Unlimited draws and repayments during the draw period
  • Terms up to 30 years
  • Loan used for business purposes
  • Minimum Loan size: $50,000
  • Loan-to-value 5 year draw period ≤ 50%
  • Loan-to-value 10 year draw period ≤ 45%
Credit Standards
  • Minimum Credit Score: 680
  • Debt to Asset Ration ≤ 50%
  • Total Debt Coverage ≥ 1.35:1
  • Current Ratio ≥ 1.00:1
  • Property Debt Coverage 5 year draw period ≥ .80:1
  • Property Debt Coverage 10 year draw period ≥ 1.00:1


Fast Track I & II


Program Eligibility
  • Low Doc program for customers with excellent credit and low LTV's
  • Permanent plantings do not qualify
  • Specialized facilities qualify only if improvements are less than 40% of the appraised value
  • Must exhibit characteristics of a profitable operation
  • Improvements must be ≤ 40% of appraised value (excluding primary dwelling)
Fast Track 1 Fast Track 2
Max loan size $300,000 $1,000,000
Loan-to-Value Ratio 55% 55%
Debt-to-Asset Ratio 45% 40%
Current Ratio N/A 1:1
Debt Service Coverage N/A N/A
Property Debt Coverage N/A N/A
Credit Scores (FICO) 700 720
Financial Statement Required Yes Yes
Tax Return 1 yr. 2+ yrs.
10, 15, and 20 year terms; 10,15,20, and 25 year amortizations
Monthly annual, and semi-annual payments available
Open prepayment on any payment date


Specialized Facilities


Property Eligibility
  • see Full-Time Farms
  • Minimum Credit Score: 660
  • Producer may or may not own animals; if animals not owned, evidence of financial and capital strength of the integrator required
  • Cash out not available
Poultry Swine Diary
Max LTV/CLTV ≤ 65/90% existing
≤ 75/90% new
≤ 65/90% existing
≤ 75/90% new
≤ 65/90%
Term in years 10-15 10 or 12 10-15
Amortization
Should reflect remaining economic life.
10 existing
15 new
10 or 12 15
Proforma Current Ratio > 1.00 > 1.00 ≥ 1.25
Proforma Debt/Asset ≤ 65% ≤ 60% ≤ 50%


Farm Service Agency (FSA)


Program Eligibility
  • Must be owner/operator of farm operation
  • First time farmers eligible
  • Land must produce at least $5,000 annually
  • Supports loans that may otherwise not qualify for conventional financing
Credit Standards
  • Minimum Credit Score: 625
  • Acceptable credit history
  • Must be US Citizen and in good standing with state and local FSA
  • Minimum Pro Forma Debt Coverage 1.20:1
  • Not delinquent on any federal debt
  • No outstanding recorded judgments
  • Is not able to obtain sufficient financing without a guarantee
Documentation Required
  • Complete Farm Application (original)
  • Current balance sheet, signed
  • 3 years of historical tax returns
  • Projected income and expense
  • 3 years of historical balance sheets
  • 4 years of historical production
  • Any debts of $1,000 must be verified by AFS
Maximum LTV 85%
Maximum loan amount: $1,112,000
Terms and amortizations up to 25 years
Full open pre-payment on all loans


Understanding Terminology

Debt to Asset Ratio - This ratio is computed by dividing total debts by total assets
Current Ratio - Calculated by dividing total current assets by total current liabilities
Proforma Ratio - Projected ratios taking into account the loan being requested
Debt Coverage - Calculated by dividing Cash Available for Debt Service by the total principal and interest payments for the year on all term debt (does Not include interest on operating/working capital loans)