Support Your Crops Through Farm Equipment Loans
July 21, 2022
Farms and ranches have long been the backbone of Texas, providing valuable crops, dairy, and meat to people all across the country. However, purchasing and maintaining essential equipment has become more difficult for farmers and ranchers due to rising operational costs and constant maintenance needs.
If your farm or ranch is in dire need of newer equipment to increase productivity and ensure your long-term success, then consider farm equipment loans from Texas Gulf Bank. Learn about how this type of loan works and why it can be a valuable tool to help you cultivate the land and support your crops and property.
The Basics of Farm Equipment Loans
Farm equipment loans are a secured financing option that allows you to acquire the machinery and agricultural equipment needed to maintain your farm or ranch, without having to spend all your hard-earned savings or working capital. The loan funds can be used to purchase a wide variety of key equipment or machines that are needed for daily operations, such as:
- Tractors
- Combines
- Harvesters
- Plows
- Sprayers
- Planters
- Balers
- Trailers
With farm equipment financing, you can have the machinery and equipment needed to improve production and efficiency without sacrificing working capital that may be needed during the lean off-season for your farm or ranch.
Why Choose a Loan for Your Farm or Ranch?
Having equipment and machinery in good working condition is vital to the daily success of your farm or ranch. However, extreme environments and harsh weather conditions can significantly impact their functionality and efficiency over time. The constant exposure to dirt, dust, rocks, moisture, extreme heat, and freezing temperatures can wreak havoc on equipment, particularly newer equipment that utilizes state-of-the-art electronics and gauges.
When farm machinery isn’t operating correctly, you could face late planting goals, shorter growing seasons, inefficient harvests, and lower yields. Malfunctioning ranch equipment can lead to production delays for poultry, pork, dairy, or cattle processing, which can result in substantial financial losses for your ranch.
Agricultural equipment can be incredibly expensive, but a farm equipment loan can spread the cost of replacement machinery over a 5-year loan period to minimize the financial impact. This allows you to maintain working capital in order to cover operating expenses and avoid using valuable cash for capital expenditures such as new tractors or balers.
A farm equipment loan helps ensure that your farm or ranch has the equipment and machinery needed to keep up with production or crop maintenance without any costly delays.
How to Apply for a Farm Equipment Loan
In order to begin the farm equipment loan process, potential borrowers are required to provide several key pieces of financial documentation, including:
- Completed loan applications
- Three years of business tax returns
- Current list of existing debts
- Farm Plan detailing farm or ranch plans for the prior and upcoming year
- Complete list of current equipment holdings
- Documentation for other material collateral
- Three years of personal tax returns
- Current personal financial statement
Once we receive your completed application form and all relevant business and personal financial information, our team of lenders will promptly review your loan application. As a local, independently-owned bank, we offer an expedited loan review and in-house approval process, meaning the typical length of our review is between two to three weeks.
Contact Texas Gulf Bank About Farm Equipment Loans
At Texas Gulf Bank, we are all about relationship banking. We have over 100 years of experience partnering with business owners along the Texas Gulf Coast. We work with farmers, ranchers, and other agribusinesses to help you take advantage of our dependable, strategic financing solutions.
We strive to ensure that your farm or ranch has access to the equipment, technology, and machinery needed for long-term success and stability. Contact a Texas Gulf Bank loan officer today to discuss farm equipment loans. We’ll also talk to you about our easy application process and how we can partner with you to see your business grow.
All Loans Subject to Credit Approval