Make Plans to Talk with Lenders before Machinery Purchases

Dan General, Industry News Release

Make Plans to Talk with Lenders before Machinery Purchases
Farmers who are planning to make equipment purchases soon also should plan on an in-depth discussion with their lender. An AgriBank Farm Credit official told DTN this week before approving a machinery loan, lenders want to hear more from farmers now than they did a few years ago. That’s attributed to lower commodity prices and lower farm incomes. AgriBank says farmers will have to convince lenders that a new tractor, combine or planter has good potential for return on investment. However, it’s a good time to buy, if it’s affordable.Loans for farm equipment are available at historically low-interest rates, and prices on equipment—especially used machines—are at sharp discounts.

From the National Association of Farm Broadcasting news service.