We know that the market conditions right now are less than ideal for getting a loan. This can be frustrating especially for people looking to buy for the first time or even tenured buyers looking to move to a new location or downsize for the future. As your financial lending experts, we want to provide you with insight and guidance on how to move forward in this market so you can make an informed decision. 

What are the current market trends?

Right now, the mortgage market trends across our area encompass high interest rates and low housing inventory. First time home buyers, people looking to downsize or upgrade, or buyers just looking to move locations may struggle to find properties that meet all of their expectations. With rates determined by the Federal Reserve, there is no telling to how long the market will remain this way, so you may need to get creative, think outside of the box, and perhaps venture down a path that you didn’t mean to go down at first and consider financing options or loan structures that are different than your run of the mill mortgage. 

How do you move forward? What are your options?

Given these trends, it may be hard to find your dream home right now, and it is imperative to be patient throughout the process. Taking your time and talking with a trusted lender will help set realistic expectations and goals when property shopping. Keeping an open mind and exploring all of your options may lead you to more opportunities that you did not consider at the start of your journey. Working with an experienced real estate agent that understands rural home lending is key to a smooth transaction. Working together, your lender and real estate agenda can help you understand specialized properties, appraisals, zoning, etc.

What is a note modification?

Once you finally found the property for you and are ready to consider applying for a loan, knowing the ins and outs of your loan product is key. Farm Credit offers a note modification, or rate reduction option, which means that we will honor a new interest rate if they come down after signing for your loan. Your Farm Credit lender will analyze the change before making it permanent to ensure it makes sense for you and your situation. It also means that your interest rate is locked in and can never go up again, even when rates are increasing.* Another benefit to a note modification is that is does not require refinancing or closing costs again, but instead it is changed with one flat fee. 

Trusting Farm Credit as a partner

When searching for a home, you want to connect with someone that will listen to your wants, needs, and concerns. The first step should always be to discuss your dream and what your intentions are with the home or land you are looking to buy. This can help your lender figure out the best loan product for you and the terms that are going to set you up for success. 

In longer term loans, the note modification option Farm Credit offers is a great way to save money over the years. We have specialized tools that will break down those savings when rates drop to ensure it makes the most sense for you. Farm Credit’s lending options are unique, and we boast a network of referral partners to tap into when extra financing support is needed. 

With higher rates, it can be a challenge qualifying for the home you need. Farm Credit looks at your financial statements to make sure all income is accounted for, including money earned by side jobs or overtime income. Farm Credit understands buying and selling rural properties and your local lender is ready to help you discuss your best lending options. 

As you can see, Farm Credit has your best interest (ha ha) when it comes to searching for the perfect property for you and your family. We care about your success and want you to feel supported every step of the way. Click the link below to be contacted by one of our lenders who can help you get started! 

*This applies only to fixed rate options.

As the new year unfolds, crop insurance agents throughout our footprint are gearing up to engage in discussions with producers about policy and operational adjustments for their upcoming spring crops. Annually, the Risk Management Agency introduces vital programs in various regions, necessitating clear explanations to producers to help them make informed decisions on potential policy enhancements for their operations. Amidst the evolving landscape of crop insurance programs, any changes within your operation also demand attention.

During the sales closing season, your agent seeks to identify any deviations from the prior year, such as renting, purchasing, or selling land, alterations in entity type, or changes in entity members. It is imperative for your agent to ensure that your policy accurately reflects these changes each year, safeguarding against complications in the event of a claim.

While crop insurance policies automatically renew, providing continuity in coverage, they must adapt to the dynamic nature of agricultural operations. Given the fluctuating input costs, commodity prices, and production history, an annual assessment of your policy becomes paramount. Scheduling a meeting or call with your agent is the optimal way to explore the array of options that crop insurance offers, tailoring your coverage to align with the evolving needs of your operation. 

A knowledgeable and experienced crop insurance agent is a critical component to your support network, and can play a crucial role in keeping you informed about updates in the crop insurance program, ensuring your strategy remains effective amidst the ever-changing agricultural landscape.

When you’re ready to review your policy, or learn more about how crop insurance can benefit you and your business, give us a call to speak with a member of our crop insurance team today at 888.339.3334 or click here to learn more.

Farm Credit awarded a total of $100,000 to beginning farmers through the Farmers on the Rise Award Program on December 7, 2023. Eric & Elizabeth Ziegler of Lebanon County, PA are one of ten recipients.

Eric and Elizabeth Ziegler are the co-owners of Royal Oaks Farm, a pick-your-own flower operation they founded in 2021. They've been managing the Smith-Ziegler Dairy, a 200-cow dairy since 2017 and are in the process of transitioning ownership from the previous generation.

The two farms are adjoining and complement each other well. Between the two, Elizabeth and Eric operate 147 total acres. They plan to grow both farming enterprises to maintain agricultural diversity and create opportunities for their children, both now and in the future. Their long-term goals are to continue working toward sole ownership of the dairy through the purchase of the remaining farm real estate, upgrading facilities, and making plant investments. They plan to purchase educational signage and establish an additional perennial field, which will allow for an expanded season.

You can meet all of the 2023 award winners here, and learn more about their farming experience on our blog!

Farm Credit awarded a total of $100,000 to beginning farmers through the Farmers on the Rise Award Program on December 7, 2023. Henry Spies V of Caroline County, MD is one of ten recipients.

Henry operates Marsh Creek Cattle Company. He established the farm in 2019 in partnership with his younger brother; they are both beginning farmers. The operation currently spans 37 acres and raises pastured-based proteins: beef, pork, chicken, and eggs. They started with rotationally grazing beef calves in 2019 but then shifted toward hogs, chickens, and egg layers due to a quicker return-on-investment. They started with 250 layers in April of 2021, with a plan to offer home delivery of all proteins. Demand for eggs grew and Henry ultimately increased the flock to 800 hens.

Henry and his brother both farm full-time, with Henry managing delivery, farmers' market presence, and online sales. They plan to further increase the flock size and partner with other farms to provide beef, pork, and chicken to their online customers. To that end, the brothers have secured a lease on a larger parcel of land in Denton, Maryland. They plan to establish some basic infrastructure there, including the rebuilding of a high tunnel for winter housing of the hens. Additionally, they going to improve the structure that will contain their egg washing system; it needs water, electric, and insulation to allow for year-round washing and packing.

You can meet all of the 2023 award winners here, and learn more about their farming experience on our blog!