November 27, 2021
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While 69% of producers want to reinvest in their operation, FBN Finance is launching a Farmland Capital product

By on October 27, 2021 0

SAN CARLOS, CA & CHICAGO – (COMMERCIAL THREAD) – Farmers Business Network, Inc. (NBF®), the leading direct agricultural technology platform and farmers network, today announced the launch of Capital of agricultural land, a unique financing co-investment option favorable to farmers in NBF Finance. The product allows farmers to tap into the equity capital of their farms to access the funds they need.

There is a huge demand from farmers who want to have access to capital without having to go into debt. According to a NBF According to a survey of its members, more than 69% of producers wish to reinvest in their farm, but do not wish to contract additional bank loans. 39% of those surveyed plan to buy back a family member, with 19% saying it will happen within the next 5 years. Another 37% of farmers want to buy new farmland in the next year, while 30% are looking to transition their land to take advantage of carbon payment programs, 13% are looking to switch to farming regenerative and 9% want to switch to a biological operation.

NBF Finance invests in a slice of the farm’s equity as a passive minority partner, now paying farmers in cash for a share of the farm’s future appreciation. There is no interest or rent to pay NBF Finance, giving farmers a path to full ownership of the land without the burden of debt.

Farmers can use Capital of agricultural land To:

  • Reduced Debt Payments: The cash injection allows producers to improve the financial parameters needed to benefit from a lower interest rate.
  • Develop their operation: Producers who want to invest in their existing farm or buy new land can use the funds for a larger down payment.
  • Keep the farm in the family: In the event of family succession, co-owners who wish to continue operating the farm can use the funds to buy out other co-owners who do not wish to.
  • Cash: Producers nearing retirement can withdraw cash from their farm equity without selling land or paying interest.
  • Transition to biological or regenerative practices: Producers can use the money to overcome agronomic and business risks as they transition to more sustainable practices.

“Access to market capital for farmers is very limited, forcing farmers to make difficult and dead-end decisions for their farm,” said Dan English, Managing Director of NBF Finance. “Capital of agricultural land of NBF Funding provides essential access to finance, allowing farmers to have unprecedented flexibility and many lucrative options in managing their operations. We are delighted to invest in the world’s most innovative farmers: NBF members.”

Through the Capital of agricultural land product, NBF Finance participates in the appreciation and depreciation of the farm alongside the farmer. The contracts are for 10 years, but the farmer can buy back the co-investment part or sell the farm at any time. The value of agricultural land is determined by the appraised value or the sale price.

Eligible farms include row crop farms, permanent crop farms and improved pastures. The producer makes all management decisions, pays the farm costs and receives 100% of the farm’s income.

For more information, please visit: www.fbn.com/capital or send an email to [email protected]

On NBF:

Farmers Business Network, Inc. is an independent agriculture technology platform and farmer-to-farmer network whose mission is to fuel the prosperity of family farmers around the world, while working towards a sustainable future. His Farmers First® promise has drawn over 27,000 members into the network with a common goal of maximizing the profit potential of their farm. NBF set out to redefine value and convenience for farmers by helping to reduce production costs and maximize the value of their crops.

The NBF The network has grown to cover more than 70 million acres of member farms in the United States, Canada and Australia. Combining the best of Midwestern farming roots and Silicon Valley technology, the company has more than 600 employees and offices in San Carlos, California, Chicago, Illinois, Sioux Falls, SD, a Canadian headquarters in High River, Alberta, and an Australian head office in Perth.

To learn more, visit: www.fbn.com.


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