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Direct Financing

Whether you need a seasonal operating loan, equipment financing,capital for expansion or long-term facility financing, you'll find the agricultural loan you want at Farm Credit Illinois.

Seasonal Operating Loans

  • Annual and multiple-year lines of credit

Facility Loans

  • Bins, dryers, buildings, other fixtures
  • Variable and fixed interest rate loans
  • Flexible payments
  • 2- to 15-year terms

Machinery and Equipment Loans

  • Variable and fixed interest loans
  • Flexible payments
  • Multiple-year revolving line of credit
  • 2- to 7-year terms

Leases

​Leases can be structured for virtually any farm vehicle, equipment, machinery and facilities – new or used – including trucks, machine sheds, grain bins, irrigation systems, combines, tractors, livestock buildings and other farm equipment. Because there is no required down payment, a lease can reduce your initial cash outlay, freeing up working capital to be used elsewhere. Lease payments and purchase options are generally fixed and known in advance, providing cash flow management opportunities and peace of mind.

Tax Advantages

While lower up-front cash outflow is definitely a benefit, one of the most-talked about reasons for leasing farm equipment or structures is the tax advantage. Since payments on true tax leases are 100 percent tax deductible, a lease is a good option if you need to reduce your tax liabilities. Because you are able to deduct your lease payments, leasing in many cases can reduce your tax liability by permitting a faster write off of expenses than can be achieved through depreciation.

Special Pick-Up Leasing Program

While lower up-front cash outflow is definitely a benefit, one of the most-talked about reasons for leasing farm equipment or structures is the tax advantage. Since payments on true tax leases are 100 percent tax deductible, a lease is a good option if you need to reduce your tax liabilities. Because you are able to deduct your lease payments, leasing in many cases can reduce your tax liability by permitting a faster write off of expenses than can be achieved through depreciation.

Section 179

Leasing can be particularly valuable if you have used all the annual Section 179 deduction for the year – or for acquisitions in the last quarter of the year – and want to manage the Internal Revenue Service’s mid-quarter convention restrictions. You should check with your tax consultant to determine how these provisions may apply to your operation.

Leases For Estate Planning

Leasing also can be a good tool for estate planning. With a lease, a producer who is looking at retiring in the near future can pass on a piece of equipment or facility to whoever is taking over the farm without any implications to the retiree’s estate. At the end of the lease, the lessee assigns the purchase option to the new farm operator whom, with the lessor’s approval, can purchase the equipment or facility or return the item and get something more suitable for his or her needs.

Terms

Our leases offer longer repayment periods for your larger capital purchases. Leases are available for:

  • Up to seven years for new machinery
  • Up to 10 years for some buildings and certain farm improvements

Choose from annual, semi-annual, or monthly payment schedules. In short, these leases are tailored to the useful life of the item being financed so you’re not paying for an asset that is physically depreciated.


Point-of-Sale Financing

If you're an equipment dealer seeking loan and lease alternatives to help your customers finance purchases, we can provide the necessary capital and customer-friendly program through our partnership with Ag Direct.


Cash Management Solutions

​The Farm Cash Management program combines the ready availability of a revolving line of credit with the high return of a short-term investment account. The program saves you money by putting your funds to work where they generate the best return. Returns are far superior to the investment option of a low interest savings account.

FCM® – Farm Cash Management® Marketing Disclosure
This is not an offer for the sale of Farm Cash Management® (FCM®) investment accounts or AgriBank Money Market investments. Such investments are not insured by or a direct obligation of the United States government. FCM investments can only be purchased directly from AgriBank, FCB. Carefully review the disclosure information provided to all prospective purchasers prior to purchasing. Farm Credit associations are not authorized to represent AgriBank regarding such investment accounts. You should not rely on any statement or opinion of our associations or personnel in deciding upon the safety and soundness of FCM accounts or their suitability for your particular situation. Certain terms and conditions apply to FCM accounts.”


Electronic Access & Transactions

​With our FC Connect - online banking, you can check on balance, interest and other account information, as well as transfer funds to and from your Farm Credit Illinois account, 24 hours a day, seven days a week. This can all be done whenever and wherever it is most convenient for you in a secure, protected electronic environment - via the Internet or by phone.


Commercial Lending Team

The Commercial Lending Team at Farm Credit Illinois serves Agribusiness customers in our market place. These customers include businesses such as:

  • Grain elevators
  • Input supply dealers
  • Farm equipment dealers
  • Seed companies
  • Meat, grain and food processors
  • Large swine operations
  • Large cash grain farms
  • Milling operations