Agricultural Loan-Specific Disclosures
At AgriFarm Capital, we understand the unique needs of agricultural borrowers and are committed to providing transparent and accurate information regarding agricultural loan products. The following disclosures outline key considerations and borrower responsibilities specific to agricultural loans.
1. Loan Eligibility Requirements
Agricultural loans are available exclusively for properties zoned or used for agricultural purposes, including farms, ranches, orchards, and similar operations.
Borrowers must provide evidence of property use and income derived from agricultural activities.
Additional documentation, such as environmental assessments or soil reports, may be required.
2. Risks Associated with Agricultural Loans
Market Volatility: Agricultural commodity prices and market demand can fluctuate, impacting borrowers; ability to repay the loan.
Environmental Factors: Weather conditions, natural disasters, and other environmental risks may affect agricultural production and property value.
Regulatory Compliance: Borrowers are responsible for adhering to all applicable agricultural and zoning regulations.
3. Loan Terms and Conditions
Repayment Terms: Repayment schedules and terms will vary depending on the lender and the type of loan. It is essential to review all loan documents carefully.
Collateral Requirements: Agricultural loans may require collateral, such as the property itself or equipment, which could be subject to repossession in the event of default.
Prepayment Penalties: Some loans may include prepayment penalties or fees. These terms will be clearly outlined in the loan agreement.
4. Fees and Costs
Third-Party Fees: Borrowers may incur additional costs for appraisals, surveys, environmental assessments, or legal services required for loan processing. These fees will be estimated and disclosed to you upfront.
Brokerage Fees: AgriFarm Capital may charge a brokerage fee for facilitating the loan, which will be disclosed during the application process.
5. Borrower Responsibilities
Accuracy of Information: Borrowers must provide complete and accurate information during the application process. Misrepresentation may result in loan denial or legal consequences.
Loan Obligations: Borrowers are responsible for fulfilling all terms outlined in the loan agreement, including timely repayment and compliance with collateral requirements.
6. Credit and Financial Information
By applying for an agricultural loan, borrowers authorize us and our lending partners to obtain credit reports and perform credit inquiries. This may have an impact on credit scores.
Supporting documentation, such as financial statements, tax returns, and operational plans, may be required to assess loan eligibility.
7. No Guarantee of Loan Approval
Submitting an application does not guarantee loan approval or specific loan terms.
Approval is subject to the lender’s underwriting criteria, and final terms are at the discretion of the lender.