As springtime approaches, farmers are looking to get started on this year’s production. If you’re a farmer, and you’re looking over financing options for the year, consider the benefits of Operating lines of credit. 

Operating lines of credit loans can be used for many purposes. These loans offer great financial flexibility that help farms manage their cash flow and short-term financing needs. ​Below, we’ll detail how operating lines of credit loans can be used.

Uses for Operating Lines of Credit

Crop Inputs

Farms require a high amount of capital to buy inputs, such as seeds, fertilizers, fuel and pesticides. Operating lines of credit can help farms with these inputs via credit. After the crop harvest, they pay back the loan.

Livestock Feed

Raising livestock requires capital to purchase feed, supplements, and additional veterinary care. Operating lines of credit will help farms finance all these expenses, keeping your animals fed.

Labor Costs

Farms require a larger workforce to maintain, plant, harvest, and process crops, and care for their livestock. If cash flow becomes tight, operating lines of credit can help cover the cost of labor, including wages and benefits. 

Equipment Expenses

Farmers need a wide variety of equipment and machinery, like tractors, combines, irrigation systems, etc., to operate a farm. Operating lines of credit help farms cover the cost of maintenance and repair.

Operating Costs

There are several operating expenses that come with corporate farming that quickly add up, including:

• rent
• utilities
• insurance

This is where an operating line of credit can become invaluable. It’ll cover these costs, helping your farm to continue operating efficiently.

Does Your Farm Need an Operating Line of Credit?

Southern AgCredit knows that your farm has major needs, and we’re here to help you meet those needs. Our expert loan officers can answer any questions you might have and build a financial plan tailored to your farm. Start by filling out the form below.