With the COVID-19 pandemic wreaking havoc across the globe, almost every sector has felt the impact of lockdowns and declining economies. Different states have enacted different restrictions to curb the spread of the virus and individuals belonging to every walk of life have felt the heat. Like everyone else, farmers are also going through uncertain times. If this uncertain situation has left you seeking financial support to fund your farming business, fortunately, farm land loans may be of help to you. Here’s why you should consider these loans in these desperate times.
1. Low-Interest Finance
There are multiple government programs being launched recently to provide farmers with low-interest loans so that they can survive the impact of the pandemic. These are, especially, targeted at small agricultural businesses and young farmers who were in desperate need of the working capital to not just meet their routine expenses but also invest in avenues to help boost their production and generate greater revenue. They can be a great help with the bills for sure.
2. Land Acquisition For New Farmers
With economies in a virtual shutdown, the job market has never been this worse in recent years. Even the biggest multinationals are downsizing and reducing their number of employees. This has certainly fueled the new breed of aspiring farmers and the farm land loans can be really beneficial for them to fund their new business. The loans can be used for land acquisition, buying equipment, and managing other operating expenses.
3. Help With Emergency Needs
In such times, farm loans can be a great way to meet the emergency needs of the farmers and can help them manage the increased costs. They can use these funds to cover their operating costs, buying or refinancing their farms, and covering other emergency expenses. If they are not funded with emergency finance, they may find it hard to survive until their next injection of cash.
4. Avoiding Land Loss and Insecurity
Due to the loss in their sales revenue, some farmers may be experiencing land insecurity and loss because of their inability to make mortgage or rent payments. Their off-farm income may be declining as well and they must be in overall financial distress. Another major concern is that farmers usually run the business on the same property where they live. And, this means they are vulnerable to eviction as well, and if they forcefully have to leave their land or house, they might end up losing both. So, a farm loan can provide them with enough finances to manage through this challenging and uncertain situation so that they could avoid land loss.
5. Refinancing Older Loans
Due to the lost revenues, it is hard for farmers to service their outstanding agriculture loans and they may be looking for options to refinance them. So, new, low-interest farm land loans can be a savior for them to pay off their old, high-interest agriculture loans. It’s a good decision if they can save considerably on their interest payments.
With multiple options available, you’d be best off resorting to United Farm Mortgage for your new farm loans. There is certainly a right kind of financing option waiting for you to manage your emergency needs through the pandemic.