Getting Ready for Spring – Open a Line of Credit for Cashflow

Before you put the first seed in the ground, you’ll want to be sure you have the financial resources to give you peace of mind that you have the cash flow you need to get through the year. One of the best ways to do that is by opening an operating line of credit. A line of credit with CNB is revolving, meaning you can pay it back at any time and draw on it again as needed. Interest is accrued on the drawn balance and payable twice a year. If you’re looking for flexibility, a line of credit is probably a great option for your farm operation. To apply, contact one of our ag lenders. You’ll need to supply:

• A year-end balance sheet, along with any accrual adjustment for inventories, including a detailed list of equipment that you bought or sold in 2022. Complete your annual statement as of December 31, 2022.
• A crop budget.
• A copy of your 2021 and 2022 Tax Returns including all schedules, once completed.
• Your crop marketing plan for 2023.

In addition to lines of credit, CNB also offers fixed-rate real estate financing, as well as equipment loans and leases. Be sure to discuss with your ag lender what your plans are for growth in 2023 so he/she can offer you the best financing package possible.