When it comes to farm loans, no one knows the local industry like the Bank of Frankewing. Since 1921, we have served both small and large farm operators in Southern Middle Tennessee. We are experienced in financing various farm needs including farm production, equipment, livestock and land acquisition.
Please contact an Ag Advisor to customize a loan for your specific needs.
Farm / Land
This financing is provided for the purchase or refinance of farm land. In many cases, the land will be used as a resource to help service the debt. For example, a customer may put livestock on the land, plant crops and/or put a nursery on the property, using the income to make the loan payments. These loans typically have a maximum term of 15 years and the collateral is normally the real estate being purchased or refinanced.
This loan allows you to purchase or refinance tractors, vehicles, machinery and/or other equipment being used for the function of your farm. The repayment terms on these loans typically depend on the type and age of the collateral, but usually do not exceed 5 years.
This loan is used for the purchase or refinance of beef cattle, stocker cattle, dairy or other livestock. Livestock loans can be structured in different ways, depending on the type of livestock being financed. The loan terms will range from a short-term grass feeding or backgrounding herd, to longer terms for breeding livestock. The repayment on these loans will be structured to match the cash flows of each particular herd.
A crop loan is a line of credit provided to cover the expenses that are involved in planting and raising a particular crop. In our area, the most popular crops harvested are soybeans, corn and wheat. A crop loan allows a farmer to make draws and then pay the loan off when the crop is harvested and sold. The cycle or term of these loans is usually 12 months and the collateral is the actual crop being harvested.
Line of Credit
A line of credit is a loan that allows you to draw money as you need it, up to the credit limit. These types of loans can be paid down and then drawn back up, depending on the structure of the line of credit, similar to a credit card.
Lines of credit are designed to meet short term working capital needs or cover operating expenses. For example, purchasing fertilizer, chemicals, and feed might be a good temporary use for this line of credit. Collateral and repayment terms are typically tailored to meet the needs of your farm and its cash flow cycle, but quarterly interest payments are required in most cases.