Agriculture Loans

Farmers National Bank is committed to Agriculture. It’s “what we do” and “who we are”. Approximately 75% of our loans involve agriculture and nationwide that annually places us in the top 100 for community banks. In fact, for community banks with over 75% of loans committed to ag and over $250,000,000 in ag loans, FNB is in the top five.

Top 100 Ag Bank in the US icon

FNB has the background, experience, and expertise in loans for:

And just as important, prompt, and local decisions with access to as much as $10,000,000 per farm customer. 

Agriculture Lenders
Front row, left to right: Luke Larson, Brandt Hutchcraft, Steve Taets.
Back row, left to right: Michael Urish, Bart Ottens, Doug Vanderlaan, Bill Dale.

We understand the nature of the agricultural industry. We know with the volatility in weather, markets, and inputs that some years will be more profitable than others. Our lending staff’s experience combined with local, quick decision making allows our customers to have the best chance at their version of success.

FNB’s locations in Prophetstown (since 1902), Geneseo (since 1997), and Morrison (since 2007) actively serve agricultural operations in northwest Illinois, including the counties of Bureau, Carroll, Henderson, Henry, Jo Daviess, Knox, Lee, Mercer, Ogle, Putnam, Rock Island, Stark, Stephenson, Warren, Whiteside, and Winnebago.

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Operating Loans

FNB’s operating loans and credit lines match the operating cycle necessary to market the commodity:

  • Loans are available for inputs and general expenses during the operation cycle of the farmer’s operation. Funds can be borrowed as a single advance upfront, or as a revolving or non-revolving line of credit, providing flexibility for cash flow purposes.
  • For loans overlapping a tax year end, the interest expense can be paid in the year with the most tax benefit.
  • Deposit and loan sweep accounts can be utilized to easier manage the loan balance.
  • FNB allocates a portion of the loan as eligible for the State of Illinois farm operating interest rate (the “state rate”) to provide a lower fixed interest rate for a portion of the loan.

Term Loans

FNB’s farm term loans are normally secured with the asset being purchased and a term up to five years. Our term loans are typically for purchases of farm machinery, breeding livestock, or farm improvements:
  • Annual, bi-annual, or monthly payment options are available.
  • Fixed or variable interest rate options are available.
  • FNB partners with government supported programs, when available, to provide loans at terms even more advantageous.

Mortgage Loans

FNB understands the unique relationship farm families have with land and their farm “operation”. Lending for farmland, farm buildings, livestock buildings, and improvements is a specialty at FNB:
  • FNB offers “in house” fixed interest rate loans up to 10 years, with amortization as long as 30 years
  • To offer fixed interest rates for terms longer than 10 years, FNB identifies borrowing options available to the Bank to “match” with funds to be loaned to the borrower.
  • FNB partners with government supported programs, including Farm Service Agency, Illinois Finance Authority, and Farmer Mac, to provide loans with terms advantageous to borrowers.
  • Annual, bi-annual, or monthly payments are available.