Equity Lines Q&A

Here are some common questions and answers about how our Equity Lines work for you.

Can this line of credit be used for any purpose?

Loan proceeds may be used for agricultural purposes or for business use. That may include operating needs like feed, seed, fertilizer, repairs, equipment purchases or family living expenses. Business uses could include payroll for a related business, office equipment, or other business expenses.

Is there a fee for every draw that is made?

There are no fees associated with any draw on your line. And if you desire funds to be wire-transferred to your bank, the bank may charge a fee for the incoming wire.

Is there a limit on the size of a draw?

The minimum amount per draw is $2,500. This loan is not intended to provide funds for small transactions.

How do you make a draw?

Contact AGRIfinancial Services at 877-548-2622 (before 12 noon EST) and funds are wired the next business day. In the near future, customers will also have the ability to draw funds using electronic banking services associated with their AGRIfinancial account.

How do you make payments?

You have the option to make principal and interest payments at any time without penalty. The line will be set up so that semi-annual, interest only payments are due on January 1 and July 1 each year during the draw periods.

At the end of the draw period, if I have an outstanding balance, how is that handled?

Both ag equity options (5 or 10-year draw) have the option to renew for an additional 5 years (subject to credit review). You can choose to either qualify for and establish a new draw period. Or, you could convert the outstanding debt to either a fixed rate or adjustable rate product that will have an amortized payment schedule.

If I have debt on my land, can I still obtain an Ag Equity loan?

Yes. However, the existing debt must be refinanced into the new Ag Equity loan which will have a 1st lien position on your property.