What is a Preferred Lender in Agriculture Financing?

By: Eric Drachenberg, VP - Ag Lender

The Peoples Community Bank is proud to participate in the Farm Service Agency’s (FSA) Preferred Lender Program (PLP), a distinction we have held for several years. As a PLP-designated lender, we are recognized for our extensive expertise in agricultural lending and our proven ability to meet the rigorous standards set forth by the FSA.

According to the FSA, the Preferred Lender Program status is the highest level a lender can achieve within the FSA Guaranteed Farm Loan Program. This designation is awarded to lenders who have demonstrated a strong understanding of agricultural financing and consistent success in originating FSA-guaranteed loans. To qualify for PLP status, a lender must have originated at least 20 guaranteed loans within the past five years, in addition to meeting several other stringent criteria.

By choosing The Peoples Community Bank, customers gain access to highly experienced agricultural lenders who can design financing solutions tailored to their unique needs. The FSA Guaranteed Loan Program provides borrowers with flexible payment terms, both fixed and variable rate options, as well as amortization and fixed interest rates for up to 30 years.

There are two primary types of guaranteed loans offered through the FSA program: Farm Ownership Loans and Farm Operating Loans.

• Farm Ownership Loans can be used to purchase farmland, construct or repair buildings and other fixtures, develop land for soil and water conservation, or refinance existing debt.

• Farm Operating Loans provide financing for livestock, farm equipment, feed, seed, fuel, farm chemicals, insurance, and other day-to-day operational costs. These loans can also be used for minor improvements to buildings, land and water development, family living expenses, or debt refinancing under specific conditions. Depending on the borrower’s needs, these loans may be structured as term loans or lines of credit.

In addition to our PLP designation, The Peoples Community Bank is also involved with FSA’s Beginning Farmer Program, which supports farmers with less than 10 years of experience, and the Socially Disadvantaged Farmer Program, which assists eligible farmers who meet certain criteria.

FSA programs are valuable tools that allow our bank to create financing solutions that align with the diverse needs of our customers. Our team of experienced agricultural lenders at The Peoples Community Bank is ready to work with you to identify the best financing options for your farming operation.