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Updated: Jul 11, 2023

Agriculture based private money loans can be an effective alternative to conventional financing when they are part of a long-term plan.


In agriculture, flexibility is everything. As a farmer, you need financing that makes sense for your unique operation. But sometimes, it can be difficult to find from a bank or conventional lender due to rigid underwriting requirements and regulations.

As a nonbank lender, we have greater autonomy over our financing decisions. While we are regulated by the U.S. Securities and Exchange Commission (SEC), we have access to government-backed capital and private equity, unlike local banks. Our alternative, or hard money loans for ag operations, give you the capital you need when it’s difficult to secure a conventional loan. We have a partner with the flexibility to craft these loans in a way that fits your immediate needs—like getting more capital or expanding your operation.

So, what exactly are agriculture private money loans, and how do you know if it’s the right choice for you?

What Is a Private or Hard Money Agricultural Loan?

Hard money lending, or private lending, is often misunderstood. Put simply, a hard money farm loan is an asset-based loan. In the nineteenth century, it was nearly impossible for a lender to verify a borrower’s income, so all mortgages were asset-based loans. Over the decades, as banks competed for business, lenders slowly began evaluating borrowers’ abilities to repay the debt according to their income instead of just looking at the value of the collateral.

Even though alternative loans tend to have higher interest rates, they are also usually interest-only with shorter terms. This equips the borrower with cash flow in the short term when it would be difficult to secure elsewhere through conventional lenders.

Is an Agricultural Hard Money Loan Right for You?

Unfortunately, unforeseen financial challenges happen all too often in the ag industry. From hurricanes to supply chain disruptions, your operation could be in financial distress in an instant.

Due to stricter underwriting requirements and regulations, traditional lenders often can’t offer financing to help financially distressed borrowers. And that’s where hard money loans come in. These short-term loans can provide access to capital quickly in order to provide the resources necessary to meet debt obligations and build on the resilience of your operation.

And hard money loans aren’t only for financially distressed borrowers. They can also provide the needed flexibility to secure capital quickly that can be used for expansion. While the customizable nature of hard money loans provides more options than conventional financing, it can be hard to find one with terms that can set you up for long-term financial success.

Evaluating Hard Money Loans

When seeking alternative financing options, it’s a good idea to find a lender who has your long-term financial well-being in mind. Lenders that only provide short-term solutions can end up causing significant harm by backing you into an overleveraged financial position. We work alongside you to create a long-term plan to transition you to a conventional loan.

In this way, you get the financing you need, when you need it, while also having a long-term plan in place to migrate to a conventional structure.


Get the Cash Flow You Need with the Partner Pivot Program

Our lender works to remove the barriers to securing financing—and that means offering flexible options customized to your unique needs.

We’re in it for the long haul—not just when you’re doing well. We understand that your needs change over time, and your financing should be capable of evolving with you. That’s why we’re the only agricultural lender in the nation capable of providing alternative financing with the option to refinance to more conventional terms when the time is right.

Farm Equipment Financing Program

We understand that it takes more then the land to make a farm work. That's why we also have special programs for equipment financing with as little as zero down payment with flexible terms.

ROC Financial Solutions

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