We're experts when it comes to financing timberland, as well.
Whether you need a loan to purchase existing timberland, refinance existing loans or timber, or establish a new plantation, we're the folks to talk to. We'll help you with long-term loans that match the age, or stage, of your growing timber and cutting plans.
Timber loan terms typically include:
- Loan-to-value up to 65%, perhaps higher depending on borrower(s) capital position, and quality and volume of timber to be harvested or offered as collateral.
- Capital and/or equity are key credit factors and, optimally, timber producers have 50%, or greater, equity.
- Loan terms can be tailored to match the growth or maturity, or harvesting plans.
- Loan terms for establishing a new plantation may be as long as 25-30 years
- Loan terms for established stands of timber will be determined based on the age and potential harvesting schedule.
- Loan repayment options offer flexibility for the borrower (dependent on the loan request and additional credit factors).
We're becoming the lender of choice for a growing number of timber and forestry producers in western Arkansas!
Farm Credit is committed to working with timber and forestry producers now, and in the future! Unlike many traditional lenders, we have never pulled back from financing the timber industry during difficult economic times. We remain committed to this important part of western Arkansas agriculture. Producers tell us they appreciate the fact that we UNDERSTAND timber and forestry and offer needed flexibility.
David Smith, Regional VP -Timber and Forestry, works as our full-time timber expert and resource from our Arkadelphia branch office. Smith is a registered forester and appraiser and has more than 30-years of industry experience.
Whether you are currently involved in timber production or want to start a plantation, or your company harvests, produces and/or markets timber and forest products, David Smith can help tailor a loan to fit your needs.
He is also available for timber cruises, evaluations and appraisals on a fee basis.
Call David directly at 800-598-8413 or 870-403-8451 to consult with him about your needs or to make an appointment.