You’re looking forward to feeding your community healthy, locally grown food from your own property for seasons to come.
You’re in good company, too. Research shows that more than a couple of million farms exist across the United States. Still, ranchers and farmers make up only 1.3% of today’s labor force.
The problem is that your current bank account cannot support your farming dreams. Fortunately, that’s where agriculture financing comes into play.
Here’s a rundown on how working capital financing can help you to achieve your agricultural goals.
Let’s jump in!
Farm Equipment Purchases
Agriculture financing can help you to purchase specialized equipment for your land. This equipment may include irrigation systems, tractors, and silos.
Before making purchases, you should price out all the equipment you intend to purchase. In addition, factor in the cost to operate each piece of equipment, such as gas, repairs, and maintenance costs.
When you buy farming equipment with working capital financing, make sure that the equipment you purchase is high quality. Reliable equipment will last longer, so it will offer a good return on your investment. It will also make completing your farming tasks easier.
Yet another benefit of working capital financing for a farm is that it can help you to keep up your land so that your farm will continue to operate efficiently.
For instance, use your agriculture financing to cover expensive repairs or upgrades to your infrastructure or land. That can include repairs to your farmhouse, chicken coop, brooder house, or barn, thus increasing your farm’s value and enhancing the quality of the products you bring to market.
Farming Supply Purchases
Finally, agriculture financing can help you to buy the supplies you need to grow healthy crops.
These supplies include the basics: dirt and seeds. However, it also includes fertilizer and harvesting tools. You may also need financing to cover a cattle herd if you plan to go into dairy farming.
If you’re trying to grow a particular cash crop, like corn, note that you will not produce cash until you reach the harvest season. In light of this, make sure that the amount of money you borrow is sufficient to coverall operating expenses until you begin to produce revenue.
How We Can Help You with Agriculture Financing
Agriculture financing may be an excellent solution for covering the cost of the supplies and equipment you need for your farm. It can also help you to make necessary improvements to your land.
Fortunately, at Penn Com Capital, we’re passionate about helping small businesses and farms to grow, thanks to our working capital financing. Through our farm financing, you can receive between $5,000 and $500,000. Our terms range from 6-24 months.
Contact us to learn more about our financing options and start funding your agricultural dream today! We are eager to hear from you.