Advice for young producers from an ag lender | TSLN.com

Advice for young producers from an ag lender

Amanda Nolz

Agriculture lender at First Dakota National Bank in Mitchell, SD

Ask an ag lender what it takes to be in production agriculture and many will say, “A million dollars.” While the financial aspect of farming and ranching can seem astronomical at times, production agriculture still offers amazing opportunities for young people with realistic goals in mind and a detailed financial plan in place.

A well-known agricultural economist recently wrote in an article that lenders will require more information and documentation of a business operation. He stressed that lenders will place more emphasis on repayment ability, capactiy and liquidity. He wrote that producers need to expect higher down payments and lower advanced rates. This advice is echoed by Will Haugen, agriculture lender at First Dakota National Bank in Mitchell, SD, who offered recommendations for young people considering getting into livestock production.

Ask an ag lender what it takes to be in production agriculture and many will say, “A million dollars.” While the financial aspect of farming and ranching can seem astronomical at times, production agriculture still offers amazing opportunities for young people with realistic goals in mind and a detailed financial plan in place.

A well-known agricultural economist recently wrote in an article that lenders will require more information and documentation of a business operation. He stressed that lenders will place more emphasis on repayment ability, capactiy and liquidity. He wrote that producers need to expect higher down payments and lower advanced rates. This advice is echoed by Will Haugen, agriculture lender at First Dakota National Bank in Mitchell, SD, who offered recommendations for young people considering getting into livestock production.

Ask an ag lender what it takes to be in production agriculture and many will say, “A million dollars.” While the financial aspect of farming and ranching can seem astronomical at times, production agriculture still offers amazing opportunities for young people with realistic goals in mind and a detailed financial plan in place.

A well-known agricultural economist recently wrote in an article that lenders will require more information and documentation of a business operation. He stressed that lenders will place more emphasis on repayment ability, capactiy and liquidity. He wrote that producers need to expect higher down payments and lower advanced rates. This advice is echoed by Will Haugen, agriculture lender at First Dakota National Bank in Mitchell, SD, who offered recommendations for young people considering getting into livestock production.

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