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.