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What is an Agricultural Real Estate Loan?

Long term mortgage loans provide a stable source of capital for financing real estate assets. These loans can be used to finance or refinance items such as farm land purchases, improvements to farm land and agricultural structures/building. Loan terms range from 5 to 30 years. All loans should be fully amortized over the term of the loan.

Agricultural Real Estate Loans Available

  • Land
  • Land Improvements
  • Buildings and Facilities
  • Grain Facilities

Advantages of Agricultural Real Estate Loans

  • Fixed, Adjustable or Variable Rates
  • 5- to 30-Year Terms
  • Interest Rate Conversion Option
  • Interest-Earning Funds Held Option
A farm and its field

Who is eligible for an Agricultural Real Estate Loan?

Eligible customers include: full-time farmers, part-time farmers and non-farmers such as investors, land trusts and retired farmers, who own or are purchasing agricultural real estate.

Benefits of Agricultural Real Estate Loans:

  • Loan terms between 5 & 30 years.

    Your payments are manageable by matching our flexible terms to your debt repayment capacity.

  • Installment frequencies of monthly, quarterly, semi-annual or annual payments.

    Your payment terms can be set to match the cash flow of your operation.

  • Loans are convertible to other pricing options for an association fee.

    Presently we offer a conversion option that allows you to change from one interest rate product to another at any time. This option is generally less costly and simpler than refinancing your loan

  • Loans are convertible to other pricing options for an association fee.

    Presently we offer a conversion option that allows you to change from one interest rate product to another at any time. This option is generally less costly and simpler than refinancing your loan.

  • Simple interest.

    You pay only interest on your actual funds borrowed. You can make advance payments on your loan at any time, which reduces your total interest cost.

Two Types of Principle Reduction Plans

The Equal Amortization Plan offers payments with increase principle amounts and decreasing interest amounts. For fixed-rate loans, the payment amount remains equal for the term of a loan. On other pricing options, the payment amount will change when interest rates change. Interest on first payment is available.

The Equal Principle Plan whereby each payment consists of a fixed principle amount plus interest on the unpaid balance. This plan results in faster principle reduction, thus less interest paid over the term of the loan. Payment amounts decline over the term of the loan. Interest on first payment is available.

What if I don’t farm full-time?

Not a problem! Even though it may not be your primary career, we know that farming is important to your way of life. If you own agricultural land or produce agricultural products on a part-time basis, Farm Credit Midsouth can help with your financing needs.

Part-Time Farmer Financing

If by day you’re a full-time businessperson, yet there’s another role you fill: that of part-time farmer. The advantage of farm life have always attracted you: the wide open spaces in the country, the learning opportunities for your children, and the physical labor that seems like therapy for your soul after a busy week in the office.

Through you may not be making a career in agriculture, your part-time farming operation is important to you. You take pride in making things grow through your own hard work.

No matter how you farm – full-time, part-time or just for fun, Farm Credit Midsouth can lend a hand. We can finance all types of farms, large and small. America’s farmers have depended on us for generations. And you can too.

Our competitive rates and flexible terms make us the logical choice for your financing needs. Already have a loan with Farm Credit Midsouth and want to take advantage of lower interest rates? WE have ways that can make it easier than ever to change your loan without the hassle and expense of refinancing.

Whether you’re financing land and farms for more than 85 years. Contact us. We’re the experts.

Part-Time Loans Available

  • Real Estate
  • Pasture, Crop & Timberland
  • Poultry & Livestock Facilities
  • Barns, Stables, Sheds, Grain Bins
  • Farm Residences
  • Operating Expenses
  • Machinery, Equipment, Vehicles
  • Leasing of Machinery, Equipment & Vehicles
  • Farm Improvements

Agricultural Financing

Many may think of agricultural financing in the Delta area as primarily focused on rice and cotton, but we know local agriculture like global agriculture is diverse. We welcome agriculturalists of all scales. We work with them and their unique operations to better the agricultural economy in Northeast Arkansas and Southeast Missouri. Whether you farm 15,000 acres, raise organic produce to sell at the Farmers’ Market, run cattle, have poultry houses or raise honeybees, we offer agricultural financial products to help you grow and prosper.


Payment Calculator

Please contact us for current interest rates.

Parameters

Principal
Interest Rate
Schedule
Term

$1,703.37

Each Payment

$313,212

Total Interest

$613,212

Total Payment


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a field being harvested by a harvesting machine
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