Myth vs Fact: Common Misconceptions of Ag Lending

Agricultural lending plays a vital role in supporting farmers, ranchers, and agribusinesses. However, there are many misconceptions that can prevent people from seeking the financial help they need. In this blog, we’ll separate fact from fiction and clear up some of the most common myths about ag lending.

Myth #1: Agricultural loans are only for large farms.
Fact: Farm Credit supports farms of all sizes—from small family operations to large-scale agribusinesses. Whether you’re starting out or expanding, there are loan programs tailored to your needs.

Myth #2: You need perfect credit to qualify.
Fact: While credit history matters, lenders understand the unique challenges of agriculture. Farm Credit looks at the whole picture, including your business plan and experience, not just your credit score.

Myth #3: Agricultural loans are too expensive.
Fact: Rates and terms are competitive and often designed specifically for farmers. Plus, Farm Credit offers flexible repayment options that align with seasonal income cycles.

Myth #4: Loans are only for buying land.
Fact: Ag loans can cover equipment, livestock, operating expenses, and even improvements to existing property. They’re not limited to land purchases.

Myth #5: Young or beginning farmers can’t get financing.
Fact: There are programs specifically for beginning farmers, including lower down payments and educational resources. Farm Credit is committed to helping the next generation succeed.

Understanding the truth about agricultural lending can open doors for farmers and ranchers at every stage of their journey. If you’ve been holding back because of these myths, now is the time to explore your options.

Ready to learn more? Contact Farm Credit of Central Florida today and discover how we can help your farm grow.