Farmers need help today. They struggle to keep everything running under difficult circumstances. Fortunately, there are many tools every farmer should know to make their lives easier. Agri-financing is a valuable tool that benefits numerous individuals in the industry.
Rabo AgriFinance combines agriculture and technology to help farmers simplify their financial processes. The bank provides agri-financing for those in need. To make their lives easier, it offers integrated financial solutions, allowing farmers to handle these tasks efficiently. In addition to agri-financing, farmers should discuss insurance and swaps/derivatives with their bankers to ensure comprehensive financial planning.
Why These Tools Are Needed
Farmers face countless challenges today. Climate change remains a concern to those in the industry. The farmers need ways to overcome these changes, which can be challenging because they are unpredictable. Industry producers won’t need to take time away from their fields to access affordable credit. They can use technology to connect with bankers and complete the necessary transactions. With the help of this financing, farmers can grow and sustain their businesses.
Real Estate Purchases
When land becomes available adjacent to a farmer’s property, they are likely to want to purchase it and expand their operations. Land is a finite resource. People cannot make more land, so they must use what is available. Land comes with high price tags, and farmers typically must finance their purchases. Agri-financing options help them do so.
Input Financing
Many farmers rely on banks to fund their crop purchases. They secure loans to benefit from early-season discounts and consolidate purchases so they only have one payment each month. Simplified finances mean they spend less time on administrative tasks and more on things that grow the farm. Furthermore, they can take advantage of special finance terms to align their crop year expenses and revenue. Doing so improves cash flow.
Equipment Financing
Farmers benefit greatly from advances in technology. Imagine having to plow and sow hundreds or thousands of acres by hand. It would be impossible. However, the small family farms are quickly becoming a thing of the past. The average farm size in 2024 was 466 acres. Equipment purchases allow farmers to manage these fields with a small workforce. When equipment breaks down, the farmer must either fix or replace the items. Doing so is expensive, which is why they typically turn to a lender for financing. Agri-financing providers can help in these situations, enabling operations to return to normal quickly.
Insurance
Farmers must manage risk to protect their hard work and investments. Several types of insurance may be needed, depending on the items produced on the farm. Every farmer might choose to invest in revenue protection, while area risk protection insurance may or may not be needed. Farmers should work with reputable insurance providers to determine the specific coverage they need.
Clean Energy Financing
Farmers may be looking to clean energy as a way to reduce costs and increase sustainability. Solar electricity systems enable them to harness the power of the sun, keeping energy bills under control. Electricity costs have been rising, so a solar electricity system is something every farmer should consider. Lenders will frequently finance these purchases with special terms, so farmers should always ask.
Any farmer in need of financing should seek a bank that offers a range of solutions. They have only one provider to work with, allowing them to focus more on their crops. With the lender’s help, any farmer can continue operating and potentially expand. When they do, the lender will be there to help them finance this expansion.
