Here’s what lenders are looking for and what you can expect as you go through the process of borrowing money from a bank. It’s good information even for those who’ve gotten loans in the past.

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About the author

Dennis Kauppila

I work with farmers on finances. I started with UVM Extension in 1983, and have worked with hundreds of farmers on issues ranging from starting a farm, how to get a loan, leasing a farm, understanding farm finances, to retiring from farming. I teach 1 or 2 courses for farmers each winter. I am working with several farmers now on business plans, and I continue to work with many farmers on balance sheets and budgeting.

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1 Comment

1. Gene Schriefer says:

   June 16, 2015 at 8:06 am

   Lending standards have gotten very strict after the fast and loose lending practices of the large banks and resulting financial meltdown.

   Beginning producers will need a more significant stake (equity/capital) to get loan. One of our commercial ag lenders stated you need your age in equity. i.e. 25 year old would need a 25% down payment/equity.