Arvest Now Offers Long-Term, Fixed-Rate Financing Through Farmer Mac
FAYETTEVILLE, Ark. — Arvest Bank, ranked #26 in the American Bankers Association Top 100 Farm Lenders in the U.S. for 1Q 2014, announced today the bank is expanding its agriculture loan products through the Federal Agriculture Mortgage Corporation, commonly known as Farmer Mac. These products are some of the best tools a farmer/rancher has in order to mitigate risks that have plagued the industry for the past few decades.
The interest savings available through the Farmer Mac program allows farmers/ranchers to have more control over their financial futures. Locking in low, long-term rates can free up funds that can be used to counteract other business risks such as decrease in crop prices, drought expenses, decrease in demand and other unpredictable situations those in the agricultural industry face on a year-to-year basis.
While today the average U.S. farmer or rancher is in good financial shape, many in the industry see potential pitfalls that could cause problems similar to what the industry experienced in the 1980s. Land prices are increasing while grain and cattle prices are becoming volatile; all are affected by global factors including the Chinese economy, trade agreements between Japan and Australia and exchange rates along with weather, inflation and domestic demand.
Arvest Bank believes the best way a farmer/rancher can reduce financial risk is to take advantage of the current low interest rates and lock them in for a longer period of time. The Farmer Mac program allows them to do so, and Arvest is pleased to make this program available in the regions in which it operates, especially because so many of its customers make their living in the agriculture industry.
Arvest Bank has consistently ranked in the ABA’s Top Farm Lenders by Dollar Volume1. In the first quarter of 2014, Arvest showed $503,679,000 in total balance of outstanding farm loans.
While Farm Credit and the United States Department of Agriculture’s Farm Service Agency can only offer loans, Arvest provides complete banking services to its agri-lending clients. From equipment financing to real estate loans and checking accounts with loan sweeps to pay down debt, Arvest can provide customers with total banking services, all with convenient locations and hours and a deep level of agricultural lending expertise.
1American Bankers Association. Top 100 Ag Banks by Dollar Volume 1Q 2014.