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AG CREDIT

AG CREDIT. AG CREDIT. SHORT TERM. ▸ To finance operating costs ▸ one month to a year ▸ purchase consumables - fuel, fert. seed, chemicals, etc. ▸ Personal level - clothing, appliances, etc. ▸ May be in form of “Line of Credit”. AG CREDIT. LONG TERM. ▸ To make investments

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AG CREDIT

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  1. AG CREDIT

  2. AG CREDIT SHORT TERM ▸To finance operating costs ▸one month to a year ▸purchase consumables - fuel, fert. seed, chemicals, etc. ▸Personal level - clothing, appliances, etc. ▸May be in form of “Line of Credit”

  3. AG CREDIT LONG TERM ▸To make investments ▸vehicles, buildings, real estate ▸car/truck - 3-7 years ▸Buildings/real estate = 10-30 years ▸Down Payments ▸Balloon Payment

  4. Ag Credit SOURCES OF CREDIT • Credit Cards • Local banking institutions • Credit Union • Farm Credit Services (FCS) • Insurance Companies • Rural Development (fka: FHA)

  5. Ag Credit Secured vs. Unsecured Secured loans need COLLATERAL, unsecured do not. Collateral = asset pledged or mortgaged to secure repayment of a loan. Lien = having rights to something that has been used to secure loan.

  6. Down Payment - initial payment to secure a loan • Balloon Payment - large payment at the end of a term of a loan.

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