1. AG CREDIT

2. 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.