Renewal Season – What you need to know about renewing your operating loan.
Author: Capital Farm Credit
Posted on: 9/30/25
Renewing your operating loan with Capital Farm Credit involves a few key steps designed to ensure your financing continues to effectively support your agricultural operation.
Operating Loan Renewal Process
1. Review Your Current Loan
- Assess your current credit limit, repayment history, and usage.
- Determine if you need to adjust the loan amount based on changes in your operation (e.g., increased acreage, input costs, or livestock).
2. Update Financial Information
Provide updated financials that include:
- Recent tax returns
- Profit/loss statements
- Balance sheets
- Cash flow projections
This helps your relationship manager evaluate your continued eligibility and adjust terms if needed.
3. Reassess Collateral
- Collateral may include crops, livestock, equipment, or land.
- You may need to update asset valuations or provide new documentation if your operation has changed.
4. Meet with Your Relationship Manager
- Discuss your goals, seasonal needs, and any changes in your operation.
- Your relationship manager will help tailor the renewal terms to match your cash flow and production cycle.
5. Sign Renewal Documents
- Once terms are agreed upon, you’ll sign updated loan agreements.
- This may include revised interest rates, payment schedules and collateral agreements.
6. Continue Accessing Funds
After renewal, you can continue using the loan to cover operating expenses like:
- Seed, fertilizer, fuel
- Livestock purchases
- Labor and equipment maintenance
As your trusted advisor, our lending team is ready to make the most of your operating line. That way you can keep the fires burning and the wheels-a-turning.
Have questions about your operating line or when your loan is renewed?