Checklist for Farm Loan Success

For first time visits (starting out or a meeting with a new banker)

  • 3 years of Tax Returns and/or audited financial statements
  • 3-5 years of yield history to include each type of crop you produce
  • A recent, completed, and accurately prepared financial statement
  • One for you personally as well as one for any other entities you operate out of
  • A debt list of all your loans with all terms and payments – only if you did not include this in your financial statement
  • An overview or “actual statement” on last year’s crop to include any income that was delayed into the following year for tax purposes – What you actually produced and spent.
  • A projection and budget for the upcoming crop year (additional analysis is optional)
  • A narrative that includes:
  • Details on your past cropping history
  • Details on any issues you have encountered recently as well as goals you have accomplished in the past 1-3 years
  • Your short term and long term goals for your operation
  • Your management structure and any changes that have been made in the past 1-3 years
  • Your plans for the future to include a succession plan if you are a seasoned farmer with children who are set to enter the operation

For returning visits to your current banker:

  • Your most recent tax return or P&L/Income Statement
  • Last year’s yield history to include each type of crop you produce
  • A recent, completed, and accurately prepared financial statement
  • One for you personally as well as one for any other entities you operate out of
  • A debt list of all your loans with all terms and payments – only if you did not include this in your financial statement
  • An overview or “actual statement” on last year’s crop to include any income that was delayed into the following year for tax purposes – What you actually produced and spent.
  • A projection and budget for the upcoming crop year (additional analysis is optional)
  • A narrative that includes:
  • Details on any issues you have encountered recently as well as goals you have accomplished in the past year
  • Your short term and long term goals for your operation
  • Your management structure and any changes that have been made in the last year
  • Your plans for the future to include a succession plan if you are a seasoned farmer with children who are set to enter the operation