Herd Financing

Dairy Herd Financing

We have a variety of herd financing programs to fit dairies of all sizes. From the dairy that is milking 2,000 head, to the dairy that is on the rise and milking 50, we have the ability to assist you with your needs. We have lines of credit, term loans, and leasing programs to fit the needs of most any dairy.

Lines of Credit and Term Loans

  • We offer Interest rates that vary between Prime -1% to Prime + 5 % (4%-10%)
  • We have a variety of terms-Revolving, interest only & a Fixed rate up to 5 years.
  • Our programs offer up to 70% LTV.

Program Guidelines

  • We require a minimum of 3 years in business
  • We prefer CPA generated financials and tax returns
  • Our target Herd size is between 200 – 5,000 hd.
  • Payments are required to be made through a milk assignment.
  • Our Client/Dairyman is responsible for replacement cows.
  • We Prefer that a herd loan be made in conjunction with feed line.
  • Our minimum preferred Credit score is 675.
  • Ear tags are provided by the Lender.

Leasing

  • Dairy cows can be leased for maximum of 48 months.
  • Cows have a 20% residual at the end of the 48 month lease.
  • Your lease payment is based upon the value of the cows that you select.
  • Payments are required to be made through a milk assignment.
  • A 1st and last lease payment is required at lease signing. The next payment will be due 60 days from the date the lease is executed. (longer if Springing Heifers are purchased)
  • Our Client/Dairyman is responsible for replacement cows. Heifer calves must be retained. Ear tags are provided by the Lender.
  • The Client/Dairyman owns the bull calves when they are born.

Program Guidelines

  • A minimum of 3 years in business is preferred.
  • The minimum herd size for this program is 100 head.
  • Our preferred daily production per cow is 50 pounds per day.
  • We prefer that our Client/Dairyman raise the majority of their feed supply.
  • All heifer calves must be retained.
  • Our preferred minimum Credit score is 625.
  • Our program requires that all Culls/deaths must be replaced and tagged within 30 days.
  • Ear tags provided are provided by the lender.