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Line of credit limits
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hinfarm
Posted 4/26/2017 07:55 (#5982816 - in reply to #5982560)
Subject: RE: Line of credit limits



Amherst WI
There's lots of if's here.

First, it depends what the projections look like.

Second, it depends on what level of commitment that bank is willing to loan towards that crop. Say the crop costs $500/ac to put in. The bank would most likely be willing to finance around half that (assuming it is projected to be a profitable level with realistic yield goals and prices), so $250. Now don't "freak out" like you would have to come up with the other $250 so to speak because some of that is what I would call "fall bills" like trucking, drying, harvesting, and the last half of the rent (if that's the way it is paid) that can come from after the crop is sold at harvest.

Then third, as far as risk, age, and other factors again I would say it depends on the bank. This might be small enough of a request that this is handled within the office of a larger bank instead of going to some bean counter 400 miles away. That said I have had better banking experiences when you are dealing with the decision maker directly (bank owner/members of the bank board) instead of trying to reiterate what you want to do through spread sheets, emails and 19 layers of management that only mess up the message you are trying to say.
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