How to Obtain Short Term Lending for Harvest Season?

Now you can listen to our blog post, “What is Harvest Season and How to Obtain Short Term Lending?” while on the go.

Fall is undoubtedly my favorite season because of the stunning colors, pumpkin picking, college football (yeah, finally! ), and the comforting aroma of a pot of chili cooking in the crockpot. It’s also the beginning of the maize and soybean harvest for our home and the majority of the agricultural families nearby.

When you take your children on a family trip through the countryside to view the fall colors or a favorite orchard, they might notice combines moving over the fields and ask you questions (or even yourself, which is OK).

Harvest at its most basic level includes setting up machinery, combining, storing, and delivering grain, as well as getting ready for the spring planting of the following year. But in between, there are a lot of things to consider. The following questions about harvest are addressed:

What are farmers doing between planting and harvesting crops?

Drones, autonomous vehicles, variable rate technology, and GPS-based soil sampling are just a few of the modern precision agricultural tools that many farmers are utilising to help make farming more precise and regulated when it comes to rearing livestock and crops. For instance, drones can identify specific weeds, allowing farmers to spray much more precisely and use less pesticides overall.

Additionally, some farmers “side dress” their corn crop by adding fertiliser next to the plants once they have started to grow. This lowers nutrient loss by up to 37 percent and enables the maize to absorb the nutrients when they are most needed. To determine how much, in what amount, and in what place a certain nutrient is required, farmers take soil samples from various locations around their fields. You may enhance soil health and safeguard Iowa’s natural resources by providing plants with what they require.

Additionally, it is a great time for machinery repairs and delivering grain elevators with maize and soybeans that farmers had overwintered stored on their farms. Even though maize and soybeans are harvested in the fall, many farmers pre-sell their grain for the following spring or early summer if prices are better. By the end of the summer, the farm’s grain bins must be emptied and cleaned out to make way for the crop that has yet to be combined.

When is the soybean and corn harvest season?

The harvest season typically lasts from the middle of September until the end of November. The number of acres a farmer farms, the number of workers they have on hand, the size of their equipment, and the number of combines, tractors, and semis they use all affect how long the harvest takes for each farmer. My husband and his father perform the majority of the work on our farm.

They can combine around 9 acres of soybeans and 7 acres of corn in an hour if all the conditions are ideal and there are no barriers in their way (an acre is about the size of a football field if you chopped the endzones off). A farm operating larger and heavier machinery could cover more ground in a shorter amount of time.

Canadian Agricultural Loans Act (CALA) Program

A loan guarantee scheme called the Canadian Agricultural Loans Act (CALA) Program was created to boost the number of loans available to farmers and agricultural cooperatives. Farmers can use these loans to start, develop, and enhance their farms, and agricultural cooperatives can also use them to process, distribute, or market their produce.

Objectives

Through the CALA Program, we help the agriculture industry revitalize while empowering cooperatives to better utilize market opportunities.

available resources

The federal government guarantees payback to the lender of 95% of a net loss on an eligible loan provided under the CALA. For any one farm enterprise, the total loan ceiling cannot exceed $500,000.

Loans are only permitted up to:

• A total of $50000 will be used to buy land and build or upgrade buildings.
• $350,000 for any further loan requirements, such as refinancing or consolidation.
• With the Minister’s consent, agricultural cooperatives may borrow up to $3 million.

As an illustration, if a farmer receives a CALA loan for $300,000 to buy a tractor, he can still access up to $200,000 to buy land or repair buildings, or $50,000 to buy another implement and $150,000 to buy land or repair buildings.

Program Execution

Loans are issued and managed by lenders under the CALA program, including banks, credit unions, and caisses populaires.

When making CALA loans, lenders must exercise the same caution and wisdom that they would when making regular loans. The government guarantee on qualified loans to farmers and agricultural cooperatives is provided by the CALA Program, which has been intended to allow lenders to include it into their typical lending practises.

A lender has 60 days starting from the purchase date to offer a CALA loan if a purchase has already been made.

Need Short Term Lending for Harvest Season? Try Lionsgate!

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