Given the Current Market Trends, Are Ranch Loans Right for You?

2021 is proving to be a valuable and productive year for farmers and ranchers. There has been an increase in land purchases from 2020 and carried over to this year. While the market has been volatile, this did not become a hindrance from purchasing land – with the low-interest rates and the low supply of land for purchase, more and more farmers are looking to expand their land and individuals are also looking to purchase farmland as a long-term investment. As a ranch owner, why do you need a loan?

Withstanding changes

With COVID-19, financial support from the government poured in last 2020, and this aided many farmers financially. The support has enabled farmers in expanding their land or in growing better crops, and more investors are interested in dipping into this market and buying their own farmlands, whether for themselves or to sell in the future.

New opportunities

Currently, the available plots of farmlands for purchase are low, and there is no foreseeable increase in the supply as there are not many farmers and ranchers interested in selling their land. Those who do, however, are the heirs who do not want to continue maintaining a farm they inherited. These families are able to charge a high price due to the demand for farmlands while taking advantage of the increase in the prices for commodities.

Maintaining livestock

The income for small farms is at a steady high, with the demand for commodities and products at an increased rate as well, and farmers and ranchers are experiencing a higher income compared to the previous years. Different crops are in high demand, as more people are turning to smaller farms to sustain the supply in smaller markets and communities.
While COVID-19 brought along a lot of uncertainties, farmers and ranchers remain optimistic and believe that the demand for agricultural products will remain high. This is an encouragement, especially for new farmers and ranchers. For beginning farmers who are starting out, taking on farm or ranch loans is a possibility, especially if the current farm income is steady.

Are you a new farmer?

For new farmers, a ranch loan can be feasible even if the farmland is still for purchase because while the prices may be high, the interest rates are at an all-time low. Investing in a good piece of property and planting crops with high demands will ensure a steady income that can sustain the payoffs for the ranch loans.
It is best to invest in a farm that has already been established and already has a sustainable income compared to starting out from zero during these times, but if the farm is a long-term investment, establishing the land for a good number of years will yield good results.

Owning and operating a ranch can be both taxing and rewarding. Much as it is a business, it also becomes your lifestyle. is one of the companies that has helped American farmers and ranchers for over 35 years, providing quality farm or ranch loans under various programs and terms for payment. United Farm Mortgage not only helps out in securing loans but also in finding the right property for investment for new farmers or for those who wish to expand their farms. While the agricultural industry has its own challenges and ups and downs, United Farm Mortgage is always ready to assist farmers and ranchers.

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