Financing the Next Season: Ag Lending for Farmers and Ranchers
Farming and ranching aren't businesses you can run one month at a time.
Decisions made today can affect your operation for years. A piece of equipment needs to be replaced. More cattle become available at the right price. Land comes up for sale next to your property. Input costs increase before you've harvested a single acre.
And through all of it, you still have an operation to run.
That's why the right agricultural banking relationship can be so important.
At Great Plains Bank, we understand that agriculture has its own financial rhythms. Our ag lending team works with farmers, ranchers and agricultural businesses to provide financing solutions built around their operations, goals and opportunities.
Agriculture Doesn't Follow a Typical Business Cycle
For many businesses, revenue and expenses happen throughout the year.
Agriculture can be very different.
Farmers may spend months paying for seed, fertilizer, fuel, equipment, labor and other operating costs before a crop generates income. Ranchers face their own cycle of feed costs, herd expenses, pasture needs and changing livestock markets.
Meanwhile, the unexpected can change everything.
Weather doesn't check your business plan. Commodity prices move. Equipment breaks. Input costs change. Opportunities appear at times you weren't expecting them.
Agricultural financing can help provide the flexibility to manage those realities.
Operating Loans Can Help Keep the Season Moving
A successful season often requires significant investment before the first dollar of revenue arrives.
That's where an agricultural operating loan can play an important role.
Operating financing may help cover expenses such as:
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Seed and fertilizer
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Feed
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Fuel
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Labor
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Crop inputs
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Livestock expenses
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Repairs and maintenance
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Other seasonal operating costs
Instead of tying up all of your available cash before the season is underway, an operating loan can help provide working capital when expenses and income happen at different times.
And because every operation is different, it's important to work with a lender who takes the time to understand your production cycle and financial needs.
The Right Equipment Keeps Your Operation Productive
When the work needs to get done, dependable equipment matters.
Tractors, combines, balers, sprayers, trailers and other machinery represent major investments for an agricultural operation. Ranchers may also need trucks, trailers and equipment for feeding, handling livestock and maintaining property.
When it's time to replace aging machinery or add equipment, financing can help spread the investment over time rather than requiring a large cash purchase all at once.
That can help preserve cash for other expenses while putting the equipment you need to work.
Whether you're replacing a tractor that's seen one too many seasons or adding equipment to increase capacity, a Great Plains Bank ag lender can help you explore financing options for your operation.
Opportunities to Buy Land Don't Come Around Every Day
For many farmers and ranchers, land is more than another business asset.
It's the foundation of the operation—and often part of a plan that stretches across generations.
When farmland, pasture or acreage becomes available, the decision to purchase it may have implications far beyond the next growing season.
Agricultural real estate financing can help farmers and ranchers purchase land, expand existing operations or make other long-term investments in agricultural property.
Maybe it's the quarter section you've wanted for years.
Maybe it's pasture that would give your cattle operation room to grow.
Or maybe you're preparing to establish an operation of your own.
Whatever the opportunity, having an established relationship with an agricultural lender can be especially valuable when the right property becomes available.
Livestock Is an Investment, Too
For ranchers and livestock producers, growth often means investing directly in the herd.
That could mean purchasing cattle, expanding breeding stock or making other investments that strengthen the operation over time.
But livestock purchases can require significant capital upfront.
Agricultural financing may help ranchers make those investments while maintaining cash for feed, equipment, labor and other operating expenses.
As with any agricultural loan, the right financing structure should take into account the realities of your individual operation.
Should You Finance or Use Cash?
Farmers and ranchers often have to make the same decision when purchasing equipment, livestock or property:
Should I finance it, or should I pay cash?
There isn't one answer that's right for every operation.
Using cash can reduce borrowing, but it can also reduce the liquidity available for the next season—or the next unexpected expense.
Before making a large cash purchase, consider what else your operation may need to fund:
Inputs. Seed, fertilizer, feed and fuel can represent substantial expenses.
Repairs. Equipment has a way of breaking at the busiest possible time.
Livestock. Market conditions can create opportunities to add cattle or improve your herd.
Land. Property doesn't always become available when you've planned for it.
The unexpected. Weather, prices and operating expenses can change quickly.
Financing may allow you to make an important investment while preserving cash and financial flexibility elsewhere in your operation.
A conversation with an experienced agricultural lender can help you evaluate your options.
A Good Ag Lender Needs to Understand More Than Numbers
Agricultural lending isn't just about looking at a balance sheet.
It's about understanding the operation behind it.
How many acres are you farming? What are you producing? How does your income move throughout the year? Where do you want the operation to be five or ten years from now?
For ranchers, the questions may be different. What's the size and makeup of your herd? Are you looking to expand? Do you own or lease pasture? What investments could improve your operation over time?
Those conversations matter because agriculture isn't one-size-fits-all.
At Great Plains Bank, our agricultural lenders take the time to understand your operation before discussing financing solutions.
Planning for the Next Generation
For many farm and ranch families, success isn't measured only by what happens this year.
It's measured in generations.
Land, livestock, equipment and decades of hard work may eventually need to transition from one generation to the next. That makes long-term financial planning an important part of running the operation.
Whether you're expanding today, bringing family members into the business or preparing for the future, building a relationship with a bank that understands your goals can help you make more informed financial decisions along the way.
Don't Wait Until You Need a Loan to Meet Your Ag Lender
Some of the most valuable conversations with a lender happen before there's a loan application on the table.
Knowing your banker—and having a banker who knows your operation—can make it easier to have a conversation when circumstances change.
It may be time to talk with an agricultural lender if you're considering:
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Financing next season's operating expenses
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Purchasing or replacing farm equipment
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Buying cattle or other livestock
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Expanding your herd
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Purchasing farmland or pasture
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Refinancing agricultural debt
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Expanding your operation
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Making long-term improvements
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Preparing for a transition to the next generation
You don't need to have every detail figured out before starting the conversation.
Sometimes the conversation is where the plan begins.
Let's Talk About What's Next for Your Operation
Every farm and ranch has a story.
Some operations have been in the same family for generations. Others are just getting started. Some are looking to acquire more land, while others are focused on improving productivity and making the most of what they already have.
Whatever your next season looks like, having the right financial partner can help you prepare for it.
Great Plains Bank provides agricultural lending solutions for farmers, ranchers and agricultural businesses, with experienced lenders who understand that agriculture is more than a business.
It's your livelihood, your land and, for many families, your legacy.
Planning for next season—or the next generation? Talk with a Great Plains Bank agricultural lender about financing options for your operation.