A Unique Approach to Operating Loans

This is Tim Hammerich of the Ag Information Network with your Farm of the Future Report.

Coming off a year that saw increases in both input costs and interest rates, many farmers are exploring options when it comes to financing. Ag Resource Management takes a unique approach from other ag lenders offering operating loans through the lens of multi-peril crop insurance. Amarillo-based area manager Michael Meil describes what makes this approach different.

Meil… “We're operating lenders, and we're doing it through the lens of multi-peril crop insurance. So generally speaking, if you've got multi-perill crop insurance, we can do a deal for you. We're doing it through the coverage itself. So we're a collateral-based lender. We're not a cashflow lender like a bank. So that gives us some flexibility. We're also not collateralizing all the other assets that farmer has. We're not taking the equipment. We're not taking the real estate. We're looking at the crop and we're taking the crop. Crop insurance and crop is our coverage in regards to the loan. So it makes us unique. Also, because of that, we help a lot of young guys, new guys that want to get into farming. We're a great fit for those guys because we can, you know, again, you get the multi-peril crop insurance, we can make the loan. And I've got a lot of young farmers in my portfolio that I help because of that.”

Learn more at www.ARMLend.com.