Operating Loans
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.
You select between savings and security with an array of loan options to fit your needs and match market trends. Operating loan choices include:
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 rates can change 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) often represents the 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.
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.