Farm Operating Loans
& Lines of Credit
Seed, fertilizer, feed, fuel, labor — the costs that keep your operation running between planting and harvest. Operating lines secured by your farm real estate, sized to your production budget. We work with multiple underwriters to find you the best solution possible.
AgLoans.com is not a bank or lender. Submitting information does not guarantee approval.
What Operating Loans Cover
A farm operating loan funds the costs of producing a crop or running a livestock operation between planting and harvest — seed, fertilizer, fuel, feed, labor, and custom work. It's repaid from the proceeds of the season's production, making the production cycle itself the repayment source.
Every request needs to meet our minimums: $500,000 or more, with agricultural real estate to help secure the loan.
$500K–$25M
Loan requests we review
Ag real estate
Helps secure the loan
All 50 states
Where we can help
1 business day
Typical time to hear from us
How Operating Lines Are Sized
Lenders size operating lines based on the operator's crop or livestock budget — projected costs through harvest plus a buffer — and check the limit against prior years' actuals and the operation's ability to repay. For crop operations, a line is usually built from a per-acre budget multiplied by total acres farmed. For livestock, lenders use a cost-per-head or per-unit production model.
Crop Budget Method
Per-acre input cost × acres farmed = base line size, adjusted for cash rent obligations, custom services, and seasonal timing of draws.
Prior Year Validation
Lenders compare the proposed line to what the operation actually spent in prior years. Significant divergence from the historical run-rate requires explanation.
Repayment Review
The operation's total debt payments — including the operating line and any other debt — must be supportable by projected or historical farm income.
Real Estate Value
Some lenders will extend an operating line of up to 50% of the value of the agricultural real estate that secures it. The lender decides the actual amount.
How Operating Line Financing Works
From initial inquiry to lender review
Tell Us the Basics
Share the purpose, amount, property, and how you expect to repay. Estimates are fine.
Review the Next Step With Our Team
We clarify your request and whether an available lending program may be worth exploring.
Complete the Formal Application
If you choose to proceed, complete the formal application and provide the documents the lender needs.
Lender Review
Nothing goes to underwriting until you say it's ready to go. The lender performs underwriting and decides whether to offer credit and on what terms.
What Secures the Line
With AgLoans, agricultural real estate needs to help secure every operating line:
Agricultural Real Estate
Some lenders will extend an operating line of up to 50% of the value of the agricultural real estate that secures it. The lender decides the actual amount.
Crop Liens
Lenders may also take a lien on the growing crop and its proceeds. The lender's security interest follows the crop through harvest and into the proceeds of sale.
Renewal Cycle
Most operating lines are annual or seasonal — they're established or renewed each year as part of the lender's annual review of the operation's financial position. The lender reviews the previous year's actual production, income, and spending before committing the new year's line.
Renewal is not automatic. Prepare updated financial statements, tax returns, and a production plan ahead of the annual review; organized documentation makes the review smoother.
When to Choose a Term Loan vs. an Operating Line
An operating line of credit fits when production costs occur at multiple points across the season and repayment comes in at harvest or sale — the revolving structure matches the draw-and-repay cycle of agricultural production.
An operating term loan (single advance) makes sense when the purpose is a defined, one-time need, such as a specific season's budget with a clear single repayment event. Term loans are simpler to underwrite but less flexible for multi-draw operations.
See also: Farmland Purchase Loans, Agribusiness Loans, Farm Loan Calculator, How AgLoans Works.
What You'll Need
To start your inquiry
- What the line would cover, and roughly how much you need
- Acres farmed or head of livestock, and what you raise
- The agricultural real estate that can help secure it, and roughly what it's worth
- Estimates are fine
Later, if you move forward
The formal application may ask for:
- Financial statements (balance sheet and income)
- Recent tax returns
- This year's production budget or plan
- Prior years' production and spending
- Everyone who will borrow or guarantee the loan
The exact list depends on the lender and the program. Our team will tell you what's needed.
Common Questions About Farm Operating Loans
What is a farm operating loan?
A farm operating loan funds the costs of producing a crop or running a livestock operation between planting and harvest — seed, fertilizer, fuel, feed, labor, and custom work. It's repaid from the proceeds of the season's production.
Is there a minimum loan size?
Yes. Our minimum thresholds are a loan amount of $500,000 or greater and agricultural real estate to help collateralize the loan. We review requests from $500,000 to $25 million.
How much can I borrow on an operating line?
Lines are sized to your production budget and checked against prior years and your ability to repay. When agricultural real estate secures the line, some lenders will go up to 50% of the real estate's value. The lender decides the actual amount.
How is an operating line of credit different from an operating loan?
An operating line of credit is a revolving facility — you draw what you need, repay it, and re-draw within the line's limit. An operating loan is a single advance with a scheduled payback. Lines of credit are more flexible for operations with multiple draw points.
What secures an operating line?
With AgLoans, agricultural real estate needs to help secure the line. Lenders may also take a lien on the growing crop and its proceeds.
Will starting an inquiry affect my credit?
No. There's no credit pull to start. A credit check comes later in the process, and only after you check the box that authorizes it.
Who decides whether I'm approved?
The lender. AgLoans is not a lender. We prepare your information and work with underwriters; the lender reviews your formal application and decides whether to offer credit and on what terms. Nothing goes to underwriting until you say it's ready to go.
Need Seasonal Financing for Your Operation?
Tell us about your seasonal financing need, and our team will review the next step with you.
Answer a few quick questions. It's free, there's no credit pull to start, and estimates are fine.
Rather talk? Call anytime. If we miss you, leave a message and we'll call you back by Tuesday, September 29. Or email info@agloans.com.
AgLoans.com is not a bank or lender. Submitting information does not guarantee approval.