Farm finance looks very different than it did during the era of historically low interest rates. Tanner sits down with Dan English, General Manager of FBN Finance, to discuss farmland financing, refinancing, leverage, loan resets, preparing to buy land, equipment debt, and what financially stressed operations can do before their options become limited. Dan boils much of the conversation down to three principles: understand your loan documents, be proactive, and find financing that actually fits the future of your farm.
FBN Finance was built around the idea that agricultural borrowers should have more of the transparency and convenience consumers have when shopping for financing. Dan explains that FBN combines a digital application process and visible pricing with agricultural credit professionals who understand the complexities of farm operations. That becomes increasingly important as farmers navigate higher borrowing costs and become more cautious about how much debt their operations can sustainably support.
For farmers with a farmland loan approaching a rate reset or balloon, Dan's advice starts before shopping for another lender: read the documents you already signed. Understand when the rate resets, whether there's a cap, what rate it would reset to today, and whether you can move between variable- and fixed-rate products. Starting early gives borrowers more time to compare alternatives and avoid getting trapped by deadlines, fees, or unfavorable terms.
The conversation also explores buying farmland in today's environment. Strategic parcels may only become available once in a generation, but higher rates make cash flow and leverage increasingly important. Farmers hoping to purchase their first or next farm can improve their readiness by maintaining an updated balance sheet, filing tax returns promptly, checking their credit, knowing all of their assets and debts, and developing realistic projections based on today's commodity prices—not optimistic assumptions. FBN also offers prequalification options so a borrower can be positioned to move quickly when the right property becomes available.
For operations already feeling financial pressure, the discussion gets more difficult but practical: evaluate whether every piece of equipment is necessary, understand profitability on owned and rented acres, examine grain-marketing opportunities, and prioritize the most expensive debt. Dan's recurring message is that time creates options. Whether you're refinancing, trying to buy the neighboring farm, or attempting to right-size an over-leveraged operation, addressing the situation early generally gives you more choices than waiting until a payment or maturity date forces the decision.