Been thinking about an operating loan?

Written By: Teresa Dabbs

Whether it’s buying feeder cattle or planting and harvesting your crops, a Carolina Farm Credit operating loan may provide you with the necessary funds to help your farm grow.

Repayment is typically one year and is structured based on the timing of your income stream. 

An operating loan can provide you with cash when you need it.  Interest rates are variable and you will only pay interest on loan funds once they are advanced.

When you get an operating loan, your loan officer will give you the specifics and can discuss an operating loan that is specific for your particular farming needs. Here's a few things to keep in mind. 

Depending on credit quality and type of farming operation, you may qualify for the following:

  • Revolving lines of credit (Gives you the opportunity to draw funds for operating needs, pay it back, and the draw it out again as needed within the respective operating cycle of one year)
  •  AgriLine (Freedom to write a check from your line of credit as needed)
  • FastCash (With a phone call or a click of your mouse, you can use FastCash to transfer funds from your line of credit to your personal checking account)

Operating loans can not be used for:

  • Capital debt
  • To purchase equipment
  • Acquire or improve long-term capital investments
  • Or, for expenses not related to the production of the income source expected to repay the loan

In order to make the process easier, be prepared to provide the following:

  • Information relating to your financial condition including your assets and liabilities
  • Your production by commodity including income and expenses
  • Any other sources of income 

Remember to contact your local Carolina Farm Credit loan officer for your operating credit. Carolina Farm Credit is a local lender with over 100 years of experience and loan officers that understand your farming goals.

Teresa Dabbs has worked with Carolina Farm Credit for over 21 years. She has a passion for serving agriculture and helping people achieve their goals. She works out of the Yanceyville Office and is extremely involved in the community. She serves on various county boards and church committees. In her spare time, you'll find her working out in her garden and helping on her family farm. She enjoys spending time with her family most of all, especially her grandchildren.