Operating Loans

When you need money to run a farming business, it has to be available when you want it and it has to offer a good interest rate. At Farm Credit, your funds are set up to meet your expected annual operating costs, which could include crop needs, labor and family living expenses, livestock purchases or other farm-related needs. Maturity dates are set to match your operation’s cash flow.

To fund your day-to-day farming operations, you can select between savings and security with an array of loan options to fit your needs and match market trends. FCS offers:

30-Day Variable Rate
The most popular product to finance operating needs.

• Interest rate is established every 30 days, based upon our variable cost of funds
• Loan rate can change - up or down - based on economic conditions
• Follow interest rates by watching movements in the U.S. Prime Rate

LIBOR Indexed Variable Rate
LIBOR (London InterBank Offered Rate) is the very lowest rate available from Farm Credit:

• Interest rate can move up or down every 30 days, depending on the movement of the LIBOR index
• LIBOR is a commonly recognized index that you can follow in the financial press

Prime-Indexed Variable Rate
Your interest rate is indexed to the New York Prime Rate

• Interest rate can change monthly - up or down - with movements in the NY Prime.
• You have a specified margin above or below Prime Rate and your loan rate changes with any change in Prime.

1-Year Fixed Rate
This loan rate is fixed for 12 months, then resets at the end of the year to a 30-day variable rate.

• You can reset the loan to another 1-year fixed rate period when the loan resets.  
• Eliminates concerns of rising interest rates during the life of the loan since a fixed rate on is a sure way to control interest costs

Competitive Rates
Price is important, and FCS aims to provide credit at the lowest cost possible. On a cost of delivery per dollar of credit, FCS ranks among the very lowest-cost providers in the nation. Check out our rates today!

Convenience
Whether you are borrowing $10,000 or $1 million, we’ll process your application promptly. Once your loan is established, you can use the convenient Credit Line drafts or Internet banking capabilities to draw on your funds whenever you need to.  You can even make your operating loan work for you by using our Farm Cash Management program.

To request an Operating Loan Brochure, please click here.