Low Rate Environment Allows Farmers to Mitigate Future Risks

Wednesday, July 30 at 10:15 AM
Category: Arvest News

Arvest now offers long-term, fixed-rate financing through  Federal Agriculture Mortgage Corporation.

FAYETTEVILLE, Ark. — Arvest Bank, ranked #26 in the American Bankers Association Top 100 Farm Lenders in the U.S. for 1Q 2014, announced today the bank is expanding its agriculture loan products through the Federal Agriculture Mortgage Corporation, commonly known as Farmer Mac. These products are some of the best tools a farmer/rancher has in order to mitigate risks that have plagued the industry for the past few decades.

The interest savings available through the Farmer Mac program allows farmers/ranchers to have more control over their financial futures.  Locking in low, long-term rates can free up funds that can be used to counteract other business risks such as decrease in crop prices, drought expenses, decrease in demand and other unpredictable situations those in the agricultural industry face on a year-to-year basis. 

While today the average US farmer or rancher is in good financial shape, many in the industry see potential pitfalls that could cause problems similar to what the industry experienced in the 1980s. Land prices are increasing while grain and cattle prices are becoming volatile; all are affected by global factors including the Chinese economy, trade agreements between Japan and Australia and exchange rates along with weather, inflation and domestic demand.

We’re currently in a situation similar to the farming boom of the 1970s – which was followed by the farming crisis of the 1980s. The best way a farmer/rancher can reduce their financial risk is to take advantage of the current low interest rates and lock them in for a longer period of time. The Farmer Mac program allows them to do so.  We are thrilled to make this program available in the regions Arvest operates because we have so many customers who make their living in the agricultural industry.

Arvest Bank has consistently ranked in the ABA’s Top Farm Lenders by Dollar Volume. In the first quarter of 2014, Arvest showed $503,679,000 in total balance of outstanding farm loans.

While Farm Credit and the United States Department of Agriculture’s Farm Service Agency can only offer loans, Arvest provides complete banking services to its agri-lending clients. From equipment financing to real estate loans and checking accounts with loan sweeps to pay down debt, Arvest can provide customers with total banking services, all with convenient locations and hours and a deep level of agricultural lending expertise.  

Tags: Arvest Biz, Business Banking, Lending and Financing, Press Release
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