Having Trouble Getting Financed for an Agricultural Drone? You're Not Alone.

Short Story:

Farm Credit Mid-America: https://www.fcma.com/locations/detail/orwell-oh

Farm Credit states: "Up to $250,000, we would request one year tax return and a current balance sheet. Above $250,000, we will need three years tax returns and a current balance sheet."

What On Target Drone Application did.

Needed a loan for a drone and trailer setup so this is what we will tell you to give you a sneak peak at what your looking at for your finances.

For reference, our agricultural drone loan was financed over a 5-year term at 7.8% interest, paid annually. This was the rate and term available to us at the time. Your rate, term, and payment may vary depending on your lender and individual financial situation.

Read more below

If you're finding it hard to get financed for a drone and/or the setup needed to operate it, you're not alone.

When we first got started with agricultural drones, one of our biggest challenges wasn't learning how to operate the equipment.

It was getting financed.

At the time, agricultural spray drones were still relatively new. We called banks and explained what we wanted to purchase and what we planned to do with the equipment.

Some lenders had never even heard of an agricultural spray drone.

Now, that was a couple of years ago, and the industry has changed quite a bit since then. But even with lenders who understood what we were trying to purchase, getting financing was still a struggle.

This went on for a couple of months.

I was getting close to giving up.

But I knew that once we could get the right equipment and put it to work, the opportunity was there.

Then We Called Farm Credit

Eventually, I decided to call Farm Credit.

At first, they were hesitant as well. They had questions about the equipment and had to discuss the purchase with the branch manager.

But they took the time to understand what we were trying to do.

They ultimately gave us the opportunity to purchase the drone and the equipment setup we needed to cover the acres we had planned for the following season.

That financing opportunity was a major step in getting our operation started.

Our Experience Can Help You

Now, I'm not saying every lender is going to finance an agricultural drone, and every farmer's financial situation is different.

But if you're struggling to find financing, don't give up after talking to one or two lenders.

Agricultural drones are still newer technology compared with traditional farm equipment, and some lenders may simply not be familiar with them yet.

That's why finding a lender that understands agricultural equipment and is willing to take the time to understand what you're purchasing can make a big difference.

Farm Credit Mid-America

One lender that has been a huge help to us is Farm Credit Mid-America in Orwell, Ohio.

They took the time to understand what we were purchasing and gave us the opportunity to get the equipment we needed.

Keep in mind that not every Farm Credit office or lender will have the same experience with agricultural drones, so financing terms and approval will vary based on the lender and your individual situation.

If you're looking into financing an agricultural drone, I recommend reaching out to Farm Credit Mid-America and having a conversation with them about your operation and the equipment you're looking to purchase.

https://www.fcma.com/locations/detail/orwell-oh

Where you can also look at their loan calculator to see what you would be paying per year and to plan for your financial budget.

Don't Give Up

If you're sitting there trying to get financing for an agricultural drone and you're getting told “we don't know what that is”, don't automatically assume it can't be done.

We were in the same position.

It took us a couple of months and a lot of conversations before we found the right opportunity.

Agricultural drones are becoming a bigger part of modern farming, and lenders are becoming more familiar with the technology.

Keep making the calls. Find someone willing to understand the equipment and your operation.

That's what worked for us.

And if you're considering an agricultural drone, we're happy to help you get started and provide the equipment information you'll need when talking with your lender.

Financing is subject to lender approval. Loan terms, rates, down payment requirements, and eligibility vary by lender and borrower.