A commercial mortgage on a farmer's property, that lets the farmer get the capital to finance the growth of their existing business or lets them buy farm land is called an agricultural mortgage. Rural or farm mortgage loans are provided to support economic growth in agricultural regions.
Mortgage loans are provided by lenders for various purposes and are flexible in nature to some extent. The loan can be used for development of farm buildings, buy or lease land, purchase farm machinery or livestock. Rural mortgage loans are also provided for buying out a rural or farm business or even for restructuring of existing loans at lower rates.
If you are in the agricultural business or living in a rural area you can opt for an agricultural mortgage loan. These are available from specialist lenders and banks. Rates offered to you may be fixed or variable and for different term lengths. Depending on your financial circumstances you have varied options to choose from.
Agricultural assets have great value, so farm mortgage loans used to be easily available from lenders. Unfortunately, rises in residential property prices and problems with the farming industry has resulted in lenders shifting their allegiance with the residential property market.
Fortunately farm loans are still readily available for land, which is easily accessible and has good communication links. The location rather than the income from farming plays a more dominating role in for the lender.
Before opting for your agricultural mortgage make a thorough study of the available lenders and their terms. You can also use various brokers who can help you find the right lender for your purposes.
