Agricultural Lending at Points West Bank
Our roots run deep when it comes to agricultural lending. For over 100 years Points West Community Bank has worked side-by-side with our agricultural producers, through good times and bad. Our relationship with farmers and ranchers created a strong foundation on which our bank was built; our team has a very deep understanding of agricultural production. The majority of our agricultural lending staff has a background in agricultural production that originates from having been involved in the industry, and many of them still have their own farming and ranching operations.
Points West provides financing for a wide variety of agricultural operations. The bank is very diversified, both geographically and demographically, and we have locations that range from the Front Range area of Colorado and Wyoming all the way to east-central Nebraska. We strive to be a one-stop-shop for our customers when it comes to their financing needs for the operation.
Below is a sample of the types of loans we make to our ag customers:
Operating Lines of Credit
Production of crops and livestock requires a tremendous amount of cash to get from planting to harvest and from calving, lambing or farrowing to weaning; and most folks simply don’t have the resources to operate from cash for the entire year. That’s where an operating line of credit comes in. The Bank is here for our producers to “span the gap” and provide access to cash throughout the year in order to pay expenses associated with the operation. Then, when the crop is marketed, the borrower repays the operating loan and the cycle starts over for the following year. The bank provides operating lines for all types of production including row crop, dry crop and livestock production. We also offer lines of credit for various types of livestock feeding, whether yearlings on grass or feeding livestock in feedlots. Each farming and ranching operation is different, and we realize that there is no “one-size-fits-all” approach to financing ag operations. Our ag lenders work with each and every customer to develop a financing package that fits their individual needs.
Loans for Capital Purchases
Anyone involved in production agriculture understands how important it is that the equipment works the way it needs to and/or that the herd produces to their maximum potential. Farmers and ranchers are forever faced with making decisions on when it’s the right time to upgrade capital assets in order to continue to produce at optimum levels. While our lending staff won’t make those decisions for our customers, they are always more than happy to sit down with the customer to discuss how the purchase may affect the operation going forward and the various financing options that are available. The bank has term loans available for customers to purchase equipment and breeding livestock. These are typically amortized over 3 to 7 years with payment structures specifically designed to fit well with the customer’s cash flow projections.
Loans for Agricultural Real Estate
Since we are so geographically diversified (being spread out over a three-state area), our portfolio of ag real estate loans follows suit. The bank has real estate loans secured by the light timber covered pasture land in the foothills of the Rockies on the western side of our trade-area, to the highly productive farm ground of eastern Nebraska on the eastern side (and everything in between). As with all of our ag loan products, we try and structure the ag real estate loans with terms that make sense to the customer’s cash flow. These loans are typically financed over a period of 10 to 20 years, with pricing structures that are very competitive in today’s marketplace.
Farm Service Agency (FSA) Guaranteed Loans
The agricultural industry has been hit hard over the past few years. Depressed commodity prices, increasing input costs and adverse weather conditions make it difficult for producers to remain profitable – coupled with the overwhelming cost of replacement assets and many operations are left struggling to simply survive until next year. And that’s not to mention the younger producers who are just trying to get started in farming or ranching. It has been described as an uphill battle in recent years. Points West Bank maintains a Preferred Lender status for FSA Guaranteed Loans, and our ag lenders are well-versed on how to package applications and service guaranteed loans. FSA Guarantees can be a huge benefit both to the customer and to the bank. Since the loans are guaranteed by the Federal Government, it reduces the risk to the bank and allows us to provide financing in situations where it may not have been possible otherwise. Having the FSA Guarantee can also allow us to be even more flexible with certain loan terms. When it’s appropriate, and assuming the application qualifies, any of the above types of loans are also available with FSA Guarantees.
Financing for agriculture is a very important part of what we do at Points West Community Bank. Please contact any of our ag lenders to discuss your financing needs.