Agricultural Lending
United Bank & Trust Company’s experience and expertise in ag lending can be one of the most important assets in your farming operation. Since our earliest days in 1915, our roots have grown strong in agricultural lending. We are proud of the quality and reputation of our ag lending, and we are equally proud of our loan officers’ individual and combined expertise. Our lenders possess strong backgrounds in agriculture … 4-H and FFA involvement as youths, ag and finance degrees, and diverse experiences in farming, grain merchandising, agronomy and banking. It is easy to understand why we are a leader in ag banking.
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We offer you more than just loans, deposits and financial services – we offer you expertise in agricultural financing. United Bank & Trust Company has developed and trademarked its own proprietary software program called FARMTRAC®. This “Financial Analysis and Risk Management” tool can help you analyze and manage your farming operation to increase profitability and identify risks. This is one more demonstration of how we are “United in Your Success!”
To meet the financing needs of your farming operation, we offer the following loan types:
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| Operating Loans & Lines of Credit (LOC) |
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These loans are designed to finance the annual operating expenses of your farming operation. Operating loans or LOC’s have a term of one year or less and are repaid from the sale of crops and livestock. The anticipated amount of operating loans or LOC advances are often established by using FARMTRAC® projections. Ag Reserve LOC’s featuring automatic advances are also available.
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| Machinery & Equipment Loans |
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When it’s time to replace or expand your existing machinery and equipment, these loans are the ideal choice. Terms of these loans are typically five years or less, and the frequency and timing of payments are tailored to fit your farm’s cash flow patterns.
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Livestock loans are used to finance the purchase and/or feeding of market or breeding livestock. Repayment terms vary; loans for feeder livestock come due near the expected marketing date for the livestock being fed, while loans for breeding livestock are due annually based upon the species and age of the breeding livestock being purchased.
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These loans are becoming more popular as an alternative to sealing grain with the USDA’s Commodity Credit Corporation, or when grain is LDP’d. A grain inventory loan gives farmers marketing flexibility … you can price your grain when you want and deliver it to whomever you choose. Grain inventory loans allow you to take advantage of carry-in-the-market to improve your net price per bushel. Proceeds of all grain sold must be applied to the underlying grain inventory note, and the loans are due when the last of the grain is expected to be marketed.
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Many of our farm customers choose to include livestock in their operation as independent producers or contract feeders. Livestock operations can utilize excess labor, diversify risk, produce steady and more predictable cash flows and provide fertilizer alternatives for your farming operation. Loan terms and repayment schedules are matched very closely to projected cash flows and useful life of the facility.
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Farm real estate loans from United Bank & Trust Company are a popular choice with our customers. They are useful when expanding your operation by purchasing additional ground or by using equity in your farm real estate to provide funds for other capital projects. Payments on our real estate loans are typically based on maturities of twenty years or less, while interest rates are usually fixed for three, five or seven year periods.
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| IADA Beginning Farmer Loans |
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Offered in conjunction with the Iowa Agricultural Development Authority (IADA), these lower interest loans are available to beginning farmers who meet the criteria established by IADA and United Bank & Trust Company. We work with qualified, beginning farmers to determine appropriate terms and conditions for an IADA loan, and then we provide assistance to the beginning farmer with their loan application to IADA.
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| Getting Started with United Bank & Trust Company |
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When first applying for any of these farm loans, please provide us with:
- Current and previous two years of financial statements
- Tax returns from the last three years
- Details regarding the purpose of the loan and anticipated repayment terms
- Corporate or Partnership Documents, if applicable (Articles of Incorporation, By-Laws, Partnership Agreement, etc.)
All loans are subject to credit approval, and terms and conditions may vary. Contact us today for more information or to get started.
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