Financing Options for the Agriculture Industry

Operating a farm, ranch or food-producing business takes hard work and determination. It also requires funding, and if you don’t have enough money to get the machinery and supplies you need, your product won’t make it to market. The agriculture industry is unique in that the product it creates is not made but grown. Thus, there isn’t much collateral to be offered up to back a loan.

There are, however, financing options available for every business niche, including this one. Take a look at some of the ways you can get the money you need to keep your crops springing up season after season.

Equipment Financing

Having the best machinery can mean the difference between making a process move swiftly or having it stopped entirely. Being able to work the property efficiently can save money and resources. It can also produce a more fruitful harvest saving time and making you more money. A good way for those in the agriculture industry to gain access to this equipment is through financing directly with suppliers. These leases have favorable payment terms and allow you always to have the best in your arsenal.

Technology Financing

With the rise of automation in the agriculture industry menial and time-consuming tasks are accomplished quicker and with fewer hands. Financing companies will grant funding to allow you to update your business with better technology knowing this will lead to better production and profitability.

Cash Flow Financing

You need money coming in to stay on top of things like payroll, inventory, medical fees and the like. If you are entering the offseason with a bank account that is not replete with reserves, you may find that securing a line of credit is beneficial. It gives you access to cash when you need it and only when you need it. You don’t have to use the entire line ever, or you can use a vast majority of it to invest in products and supplies required.

Marketing Financing

Supplying many companies versus just one or two is crucial in growth. To get your name out there, you need to be able to advertise. If your business is clinging to life with nothing left over after the bills, you will never succeed. Therefore, securing money to increase the public’s awareness of your product is something financing companies will want to support.

The agriculture industry is one of the most fundamental components in the world. It provides the food necessary to sustain life. Luckily you have options to secure the money you need to stay productive and fruitful for years to come.


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