Farming Finance and Rural
What Is Farming
A term we use to describe all form of agricultural and farm finance options in the country and
rural business sector, sometimes called agricultural finance.
This can also be
broken down into more specific terms such as equine, horticultural or land finance.
Finance can be provided for many things such as land, buildings, working/non working
Rural finance can be
- Properties with agricultural restrictions.
- Non-working farms
- Holiday complexes
Basically every type of rural
When and why consider farming finance?
Funding for a new property or property expansion, repayment of an overdraft or loan, business
start up assistance, purchasing new equipment or machinery and any other type of development aimed at
Many companies offer rural credit and farming finance but few completely understand it, there
are some companies who deal with nothing but rural credit & agricultural funding and these would be the
best place to turn for financial help, this way you can be assured of a professional and expert advice at all
Things to Think About Before Applying For Farming Finance
Purchasing a farm or agricultural property may require a special type of
financing. Securing a mortgage from a bank for a house is pretty straightforward in today's
climate, however financing a farm property can be a little trickier and may extra preparation
Your credit score is very important when it comes to applying for finance and
will be a deciding factor in whether your application is successful. No matter what specific
use the loan is for or which institution you are applying to seek financial assistance
Every lender will need to feel confident that they will be paid back the full
cost of the loan so checking your credit score and history will be one of their first steps
in processing the application.
Make sure you verify the type of farm land classification before applying for
rural credit and financial assistance. When searching for lenders, you will need to match the
type of financing provided by the lender to the type of property/land you wish to
The land may be classified as a small holding, private farm land, commercial
farm land or agricultural farm land. Check the official government documentation you hold for
your property and make sure you find a lender who specialises with that specific type of
property finance. Some lenders may only deal with commercial farm land and not small
holdings, while others may provide assistance with every types of property.