February 27, 2020

How to prepare for your 2020 Operating Line

We know you have plenty of things to think about right now but prepping for the maturity of your operating loan is approaching. You will want to give yourself enough time to prepare for your 2020 loan request. We suggest starting to plan your operating loan renewal 90 days in advance of renewal. Though we do not fund operating lines we thought it would be helpful to give you some tips and tricks before you reach out to your operating lender make sure to prepare the follow items:

Get on your lenders and other potential lenders calendar. Schedule a meeting that will give you something to stick to. Gathering the information, we will list out to prep in advance of the meeting will take some time.

Have you been with the same operating lender for many years? It might be easy to have them renew your next operating loan but there may be a better deal out there. We recommend that you think about what other operating lenders are out there. This will make you aware of what other lenders have to offer. Compare variables such as the loan terms, interest rates, and loan limits offered by these different lenders. There might be something else out there that is better for your farming operation.

What to bring to your meeting with your current or new operating line lenders:

Recap of prior year

Annual Tax Returns and Accrual Profit/Loss Statement

Year-end Balance Sheet


Operations Budget for Crop/Livestock

Crop Plan

Sales Plan

Schedule of Rental (Lease) Agreements