AGRICULTURAL MORTGAGES & FARM FINANCING

Agricultural financing can support the purchase, refinance, expansion or improvement of farmland and farming operations.Financing may be available for agricultural land, farm buildings, equipment, livestock and other eligible farm-related needs. The appropriate structure depends on the type of operation, financial performance, available equity, property value, cash flow and lender requirements.

FARMLAND MORTGAGE FINANCING

A farmland mortgage may be used to purchase or refinance eligible agricultural land and farm properties, including properties with agricultural buildings and infrastructure.

For established farm operations, financing is generally assessed based on the strength of the farm business and the property, including financial statements, cash flow, existing debt, available equity, land value and the operation’s ability to service the proposed financing.

WHAT CAN FARMLAND FINANCING SUPPORT?

✓ Purchase of Agricultural Land
✓ Purchase of an Existing Farm Operation
✓ Refinancing Existing Farm Property
✓ Expansion of Farm Acreage
✓ Construction or Improvement of Farm Buildings
✓ Barns, Storage & Agricultural Infrastructure
✓ Eligible Farm Development Projects

WHAT MAY BE REVIEWED?

✓ Farm Financial Statements
✓ Revenue & Cash Flow
✓ Existing Farm Debt & Obligations
✓ Debt Repayment Capacity
✓ Production & Operating History
✓ Land and Property Value
✓ Available Equity
✓ Farm Assets & Security
✓ Business or Expansion Plan, where applicable
✓ Financial Projections for New or Expanding Operations
✓ Operator Experience

FARM EQUIPMENT FINANCING

Equipment financing can help agricultural businesses acquire new or used machinery required for farm operations.

Depending on the financing program and lender, eligible equipment may include:

✓ Tractors
✓ Combines & Harvesters
✓ Irrigation Systems
✓ Seeding & Tillage Equipment
✓ Hay & Forage Equipment
✓ Agricultural Trailers
✓ Other Eligible Farm Machinery

Financing terms depend on the equipment, purchase price, farm financial strength, useful life of the asset and lender requirements.

LIVESTOCK FINANCING

Livestock financing may help eligible farm operations purchase or expand livestock used in agricultural production.

Financing requirements vary depending on the type of livestock, farming operation, cash-flow cycle, available security and repayment capacity.

✓ Breeding Livestock
✓ Feeder Cattle
✓ Dairy Cattle
✓ Other Eligible Livestock Purchases

Newer or expanding farm operations may have limited historical financial results. In these situations, lenders may place greater emphasis on the business plan, financial projections, available equity, operator experience, market assumptions and the overall feasibility of the proposed operation.

A well-prepared financing application should clearly explain how the farm will generate sufficient cash flow to support operating costs and proposed debt.

FINANCING FOR NEW & EXPANDING FARM OPERATIONS

WHY WORK WITH A MORTGAGE BROKER FOR AGRICULTURAL FINANCING?

Agricultural financing can differ significantly from residential or conventional commercial lending because farming operations often involve seasonal cash flow, specialized assets, agricultural land and industry-specific risks.

✓ Review Available Agricultural Financing Options
✓ Compare Financing Structures & Requirements
✓ Identify Documentation Required by Lenders
✓ Review Farmland, Equipment and Expansion Financing Needs
✓ Help Structure Financing Around the Farm Operation
✓ Coordinate the Financing Application

START WITH YOUR FARM FINANCING NEEDS

Every agricultural operation is different. The appropriate financing solution depends on the property, type of farming operation, financial performance, available equity, assets, cash flow and long-term business goals.

Rihana Peiman can help farmers and agricultural business owners in British Columbia review farmland mortgage and agricultural financing options and understand the requirements for their financing needs.

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