By Danny Young, Vice President, Ag & Rural Lending in Sedalia
Thinking about expanding your poultry operation or finally taking the leap into farm ownership? Securing the right financing is crucial, and understanding the process can make all the difference. In this Q&A, we sit down with the Danny Young, Vice President, Ag & Rural Lending, at FCS Financial to get the inside scoop on financing your poultry barn project. From construction loans and repayment structures to the unique considerations for different poultry types, we cover everything you need to know to get started. Read on to learn how FCS Financial can help you turn your poultry farming dreams into a reality.
What types of poultry barns does FCS Financial finance?
We finance a variety of poultry barns. Chicken broilers, breeders, pullets, and egg barns. We also finance turkey grow out and breeder operations.
How does FCS Financial work with a producer to finance a poultry barn?
We begin with an informative meeting to discuss what is required from the customer and the integrator. We work with the customer to come up with a list of bids and information they will need to submit an application. Next, we work with them to ensure they understand the process and how the loans and assignments will work once the construction is completed.We strive to work with the customer every step of the way, from the beginning information gathering to loan servicing after the construction is completed.
Does the financing change based on the type of barn it is?
The loans are structured differently depending on the type of operation. Some will need lines of credit to purchase birds and feed, and some integrators own the birds and feed so they will not require lines of credit. Additionally, some integrators offer a new house incentive payment that we will tie to a separate loan as it will pay off sooner.
How does FCS Financial work with integrators?
FCS Financial has established good relationships with the integrators. We work with them on the timing of bird placement to setting up the assignments.
What is an assignment?
An assignment is a direct payment from the integrator to FCS Financial. This covers the borrower’s scheduled payments.
Can I obtain a construction loan with FCS Financial to build a poultry barn?
Yes, FCS Financial is very familiar with them and willing to work with the customer every step of the way. Here’s a checklist that can assist you.
Will the repayment structure of my loan be customized to my integrator contract?
Yes, it will. We will set up a payment schedule and assignment to match your cash flow as the operations can vary a lot on payment timelines.
Navigating the financial landscape of poultry farming can seem daunting, but with the right guide, it doesn't have to be. FCS Financial understands the unique needs of poultry producers and offers tailored solutions to help you achieve your goals. Our expertise in construction loans, repayment structures, and collaboration with integrators ensures a smooth and successful financing experience. Whether you're just starting out or expanding your existing operation, reach out to FCS Financial to explore your options and take the first step towards a thriving poultry business.
Danny Young, NMLS #789714, is a Vice President, Ag & Rural Lending, in the FCS Financial Sedalia office. If you’re looking for an ag lender who understands the ups and downs of Missouri agriculture, reach out to an FCS Financial loan officer today.
