THE Hitching Post
SHORT-TERM OPERATING LOANS: A FARMER’S GUIDE TO SEASONAL SUCCESS
Every farm season brings its own set of opportunities and challenges. Often, expenses come well before income arrives. That’s why many farmers rely on short-term operating loans to keep things moving. These loans offer the flexibility to cover essential costs as they arise, helping you manage your operation with confidence and care, no matter the season.
This guide explores how short-term operating loans help manage seasonal expenses, maintain momentum, and lay the groundwork for long-term success.
THE ROLE OF CASH FLOW IN SUCCESSFUL FARMING
Planting crops and raising livestock aren’t the only aspects of running a successful operation – you need to be able to manage cash flow. Cash flow keeps everything running – from laying seeds to feeding animals and fueling equipment. It’s at the center of every business, and just as important to your farm’s finances as any other operation.
Farm income has one unique feature that can make managing cash flow particularly challenging – it’s highly seasonal. The start of a season may bring a raft of new expenses, and it often takes months to see the financial returns of your farming efforts. That’s where smart financial tools, like a farm operating loan, can bridge the gap.
CASH FLOW CHALLENGES IN THE FARMING SEASON
Every farming season presents a new financial puzzle. Planting requires upfront costs for seeds, fertilizer, and equipment repairs. Harvest might bring a windfall, but it can be highly variable and only comes after months of expenses.
Farmers in Delaware, Pennsylvania, Maryland, Virginia, and West Virginia often navigate fluctuating land values and unpredictable market prices, making cash flow even trickier to manage. Without enough working capital, day-to-day operations can stall, putting your entire farm business at risk.
SHORT-TERM OPERATING LOANS: A SOLUTION FOR SEASONAL SUCCESS
Short-term farm loans, also known as operating lines of credit or operating loans, are a type of agricultural loan that offer a safety net when expenses come due before revenue arrives. These loans cover operating expenses, allowing farmers to manage seasonal operation costs without draining their savings, and until operational income becomes available to pay down the line of credit in full.
Farm Credit offers tailored short-term farm loans designed with farmers in mind. Whether it’s purchasing livestock feed, repairing machinery, or paying labor expenses, these loans help smooth out cash flow disruptions and keep your operation steady through the season.
BENEFITS OF SHORT-TERM OPERATING LOANS
Taking out a short-term agricultural loan, or line of credit, isn’t just about covering costs; it’s about keeping the farm running smoothly.
Some benefits include:
• Quick access to funds when urgent expenses pop up
• Financial flexibility so you can control your finances, not the other way around
• Tailored repayment terms that align with seasonal income patterns
• Competitive interest rates that make borrowing affordable
Short-term farm loans provide the resources needed to seize opportunities, like buying fertilizer in bulk when prices dip or hiring extra hands during peak harvest.
APPLYING FOR A SHORT-TERM OPERATING LOAN WITH FARM CREDIT
Farm Credit simplifies the loan application process with a step-bystep approach:
1. Determine the loan amount needed for seasonal operations
2. Complete the loan application with farm financial details
3. Gather required documents, such as tax returns and business plans
4. Receive funding and put it to work, keeping your farm productive
Our team is here to walk you through each step and answer any questions along the way.
EMPOWERING NEW FARMERS WITH SHORT-TERM OPERATING LOANS
Starting a farm takes more than a plan – it takes capital. Many new farmers don’t have deep savings or extensive credit histories to fund operations when money isn’t coming in. Farm Credit offers farm ownership loans and farm loan programs that help beginners break into the industry. Resources like financial planning assistance, support from experienced advisors, and special loan options make it easier than ever to start strong.
LOOKING FORWARD: THE FUTURE OF FARMING WITH SHORT-TERM OPERATING LOANS
Farming will always come with financial ups and downs, but having the right tools in place help farmers stay ahead. With seasons becoming increasingly unpredictable, short-term operating loans will remain a crucial tool for managing seasonal cash flow, securing equipment, and investing in expansion. The right support lets farmers and ranchers focus on what they do best — feeding communities and growing their businesses.
If you’d like to learn more, our team is here to help you find the right loan for your farm’s needs. Contact our team at 888.339.3334 to learn more.
MAKING RURAL HOMEOWNERSHIP DREAMS A Reality
HOW FARM CREDIT HELPED HENRY STOLTZFUS PURCHASE HIS DREAM PROPERTY
For many first-time homebuyers, securing financing can be a daunting challenge — especially when purchasing a rural property. But thanks to Farm Credit’s First Time Rural Property Owner program, buyers like Henry S. Stoltzfus of Lancaster County, Pennsylvania, are finding their paths to homeownership a little easier.
Henry was in search of a home that would not only provide space for his family, but also accommodate his construction business. When he found a ranchstyle house nestled off the main road on three and a half acres — complete with a two-car garage, a mix of woods and pasture, and room for a garden — he knew it was the perfect fit. Henry began exploring financing options to make his dream a reality.
“I talked to my dad, and he said, ‘Why don’t you try Farm Credit?’ Neither of us knew if Farm Credit provided home loans, but I decided to call and find out,” Henry recalled.
To his relief, Henry learned that Farm Credit does offer home financing, and through the First Time Rural Property Owner program, he was able to secure a loan with a 15% down payment instead of the traditional 20% — without needing private mortgage insurance.
That difference mattered.
“At first, we planned for the traditional 20% loan down payment by securing an additional small loan from my dad,” Henry explained. “When we found out we qualified for Farm Credit’s program, it gave us a break. Since we needed only 15% down, we were able to keep some of our savings for emergencies.”
That foresight paid off within just two weeks after moving in, when Henry had to replace the home’s water system. Thanks to the savings he retained, he was able to cover the unexpected expense without financial strain.
Beyond the financial benefits of working with Farm Credit to secure his home loan, Henry also found the service to be exceptional.
“Our loan officer was flexible and able to work with my schedule,” he shared. “She made the process
easy and was available to answer questions when I needed help.”
For first-time homeowners, having a lender who understands their unique needs is crucial. Farm Credit’s First Time Rural Property Owner program not only made Henry’s home purchase possible, but also eased his cash flow concerns — especially important for his construction business, where work can slow down at the end of the year.
“With a construction business, the end of the year always is difficult because we’re not as busy,” he said. “The smaller down payment allowed me to have more money available and ease our cash flow stress.”
When asked if he would recommend Farm Credit to others, Henry didn’t hesitate.
“Farm Credit’s support made the home-buying process smooth,” he said. “The service was great and they thought through all the details to make getting the loan as easy as possible. If our lender sent us a document package, there was always an envelope with a printed label. We only had to sign and mail it back. We don’t have internet access, and those small details made a big difference for us.”
For those dreaming of owning a rural property, Farm Credit’s First Time Rural Property Owner program offers financing for up to 85% of the purchase price or appraised value, without requiring mortgage insurance.*
Farm Credit also offers loans to individuals without credit history. Many homebuyers may not have established credit or debt and while traditional banks require a credit history, Farm Credit is able to help by providing financing options tailored to these unique situations.
If you’re considering purchasing your first rural home, Farm Credit can help make your dream a reality. To learn more about the First Time Rural Property Owner program or home loans, give our team a call at 888.339.3334.
*Certain restrictions apply. This offer is subject to credit approval.
You rise to the occasion every day with your farm or ag business. Keep reaching with Farm Credit’s Farmers on the Rise Award of $10,000.
If you are a beginning farmer with three to ten years of farming experience, you could be eligible to grow your business through our award program. Apply today to win and allow us to invest in you and help support the growth of a new generation of farmers. Learn more by calling our team at 888.339.3334 or by visiting horizonfc.com/rise.
PROTECT WHAT YOU’VE WORKED Hard to Build
At Farm Credit, we know your livelihood depends on trustworthy and dependable financial services. With concerns like check and wire fraud becoming more common, it’s important to protect what you’ve worked hard to build.
That’s why we offer secure solutions — including AutoDraft, Digital Banking, FastCash, and electronic document signing — to help you manage your finances with confidence. Whether you’re making loan payments or signing important
documents, these tools are designed to be easy to use, reliable, and guided by the same care and integrity you bring to your work.
Whether you’re in the shop or the field, you can rest easy knowing your finances are protected.
Call our team at 888.339.3334 to learn how we can help you safeguard your operation.
