Agriculture financing has typically been done by local banks who have built relationships with farms and families; there is a significant opportunity available for alternative lenders to provide financing for farms up to $100,000; “If you as a farmer need operating funds and you can’t get them from a bank, you don’t have a lot of options,” says Peter Martin, a principal at K-Coe Isom, to deBanked. “Historically, nobody outside of banks has had much interest in lending operating money to a farmer.”; there are very few alternative lenders looking at the market and this could be an opportunity for them to learn about the industry to help fill a gap that is sorely needed; most farms are in the same family for generations, showing there is a historical record to underwrite a loan and in many cases government data to verify production. Source.
