AG Loans

Agriculture is the economic backbone for North Central Missouri. Putnam County State Bank is committed to strengthening that pillar through assisting agricultural producers in making sound financial decisions to operate and grow their farming operation. We are proud to have assisted many producers in profitably expanding and growing their business over the years.  We look forward to assisting you in making the sound decisions required for being competitive in today’s fast changing agricultural world! All loan decisions are made Locally.

Through our conventional loans and participation in state and federal programs, Putnam County State Bank can provide the expertise you need to properly finance, structure, and grow your farm finances. We offer the following types of loans in which to fulfill the above objectives:

Operating Loans and Lines of Credit – We offer farm-operating loans to finance annual farm input expenses. We will assist in preparing a cash flow that will provide a road map to guide you through the year and determine the amount of financing needed before the crops and livestock are sold. Typically these loans would be up to one year in length and involve a revolving line of credit that allows borrowers to use funds as they are needed and repay the advanced funds when cash is generated. Borrowers only pay interest on funds they have advanced but have immediate access to funds within their operating line of credit.

Machinery and Equipment Loan – When new or used equipment is purchased for your farming operation, we have flexible financing available. Loans can be fixed rate or variable rate for a period of up to five years. Typically, your trade-in will be sufficient to provide the down payment. Payments will be matched to your earnings and cash flow expectations.

Agricultural Real Estate Financing – Putnam County State Bank offers loans for purchasing and refinancing farmland or utilizing the equity you have invested in farmland for other purposes. Typically the loans are structured, to be serviced from income produced by actual production from the land and overall cash flow. Loans are structures for up to 30 years. Variable rates are available from 1-3 years.

Beginning Farmer Loans - Putnam County State Bank offers loans for beginning farmers in conjunction with the Farm Service Agency. The current program is a 40/50/10 participation. The beginning farmer contributes 10% in down payment. FSA loans 40% at 4.0% fixed rate on a 15year amortization. The remaining 50% is amortized over 30-40 years. The purchase price can not exceed $250,000.00 and the applicant must be at least 18 years of age.

Specialized Livestock Facilities – There are many specialized livestock facilities that can utilize excess labor, produce a monthly income and provide fertilizer for today’s modern farming operation. Loans are available to finance these facilities based on an amortization of 8-15 years. The loan terms are matched to the income produced by the facility and overall cash flow.

Deposit Accounts – Putnam County State Bank provides deposit products that assist you with your farming operation and personal banking needs. A variety of checking accounts, money market accounts. ATM cards are available to provide for your instant cash needs.

Business Planning – Putnam County State Bank staff works closely with farm borrowers to utilize balance sheets, tax returns, income statements and projected cash flows. These tools serve as aids in evaluating a farm business and creating a trend analysis. This information is also utilized to assure that agricultural loans are structured properly.

Particpation - Missouri FIRST Link Deposits Program, and Missouri Agricultural and Small Business Development Authority (MASBDA)