UBTC’s experience and expertise in ag lending can be an important asset in your farming operation. Since our early days in 1915, our roots have been anchored 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 and diversified backgrounds in agriculture … 4-H and FFA involvement as youths, college degrees in ag and finance and years of experience in farming, ag businesses and banking. And then there is FARMTRAC!
FARMTRAC - “Financial Analysis and Risk Management” program
All ag lenders gather financial information to analyze their customers’ operations and potential risks to the bank …. that is how FARMTRAC began. Through the years and thousands of conversations with our ag customers, we refined and improved our information gathering and analysis processes, and then we began sharing this information back with our farm borrowers. We talked honestly with them about their farming operation… what was going right, what could go better, the impact of risk in their operation and strategies they could implement for a more profitable and secure future. When our farm customers began requesting FARMTRAC sessions with us, we knew we had developed a valuable service, and we trademarked it in 2003.
The FARMTRAC package includes a balance sheet, trend analysis, risk rating, projected cash flow and a proforma balance sheet, none of which are particularly unique. What sets FARMTRAC apart is the manner of our information gathering, the analysis we provide, and the format we use to display our findings.
FARMTRAC can help provide answers to these basic business management questions:
- Where am I today?
- How did I get here?
- Where do I want to be in the future?
- How do I get there?
- What are the risks involved?
- Can I withstand the risks?
No doubt about it… FARMTRAC is the tool that sets United Bank & Trust Company apart from other ag lenders and keeps our customers coming back year after year. No other bank has it.
Operating Loans & Lines of Credit (LOC)
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.
Machinery Equipment Loans:
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.
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.
Grain Inventory Loans:
These loans are becoming more popular as an alternative to the hassle of selling grain with USDA’s Commodity Credit Corporation. 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.
Livestock Facility Loans:
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.
Real Estate Loans:
Farm real estate loans from UBTC 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, seven or ten year periods.
IADA Beginning Farmer Loans:
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 UBTC. 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.
Getting Started with United Bank &Trust Company :
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.