Make Plans to Talk with Lenders before Machinery Purchases

Farmers who are planning to make equipment purchases soon also should plan on an in-depth discussion with their lender.  According to AgriBank Farm Credit, before approving a machinery loan, lenders want to hear more from farmers now than they did just a few years ago.  That’s attributed to lower commodity prices and lower farm incomes.  AgriBank says farmers will have to convince lenders that a new tractor, combine or planter has good potential for return on investment.

However, it’s a good time to buy.  Loans for farm equipment are available at historically low-interest rates, and prices on equipment—especially used machines—are at sharp discounts.

If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com