High inputs, low grain prices, high cattle replacements, and market uncertainty prevail. That’s the story of the current ag economy. While that reality paints a tough picture for farmers and ranchers, financial tools, like a farm operating line of credit, can help you navigate the ups and downs of agriculture.

An operating line of credit is available loan funds to support a farm, ranch, or other agribusiness throughout the operating cycle. It can cover expenses for input costs, labor costs, equipment payments, real estate payments, and other necessary expenses.

At HPFC, an operating line of credit works differently than at your local bank. Typically, our operating loans have drafting privileges that allow you access to your line by writing bank drafts directly for the operating expense. When you sell your crops and livestock, the line of credit is paid down with the sales.

You’ll save time and money spent on interest without the need to call the bank every time you transfer funds between the operating loan and your checking account.

Ultimately, your farm operating line of credit keeps things simple and flexible so you can focus on running the farm.

A revolving line of credit is the most common operating loan at High Plains Farm Credit. It has a specific loan amount but not a total disbursement limit. This type of loan is similar to a credit card.

You use the funds, pay them down, then reuse them again. It doesn’t matter how many times this process repeats – the balance continues to cycle up and down. Any time the operating loan is paid down, the funds become free to cover other operating expenses.

When you pair your operating loan with online banking, you unlock the mobile deposit function that makes the process of accessing funds even simpler. All you need to do to receive almost instant credit is to upload a photo of the check for deposit on our mobile banking platform.

Operating lines of credit typically aren’t used to purchase real estate. However, High Plains Farm Credit does have extensive real estate loan options designed for this purpose.

HPFC operating loans are priced at a variable interest rate. The balance on loans changes daily, so you only pay interest on the funds you need at a specific time.

Yes. Operating lines of credit require collateral options and fortunately, those choices are flexible to your operation. Your collateral might include options like:

• Crops
• Livestock
• Inventories
• Accounts receivables
• Government payments
• Farm equipment

No two operating loans are the same and the HPFC team can work with you to find an option that fits your farm or ranch.

One of the foundational benefits of an operating loan with HPFC is the freedom to run your farm or ranch as you see fit. Even through the seasons and cycles, you’ll find the stability of steady cash flow that allows you to make the right choices for your farm.

And the best part? You’ll have a team of trusted agribusiness experts at your side through it all. We pride ourselves keeping things local with quick turnaround and decisions that mean the highest level of service.

When you partner with High Plains Farm Credit, you become part of the family and part of the cooperative. As a customer-stockholder, you can benefit from our patronage dividends program. This way of returning our net income to you puts more money in your pocket in a time when every dollar counts.

If stability for your farm finances seems impossible in today’s ag economy, a farm operating line of credit with HPFC could be just the tool you need. With easy-to-access funds and a team of ag lending experts to guide, you’ll be on your way to running your farm or ranch with freedom and flexibility.